Using a Structured Settlement Calculator
Structured Settlement Calculator is a tool that helps us in our endeavor to maximize the amount of money that we will receive in case we decide to sell or transfer our settlement. It is a common practice nowadays for individuals to use the Structured Settlement Calculator in planning their next steps. It will give you an idea on how much you can expect to receive if you sell your settlement. However, it will not provide you with an idea on the actual amount that you can get. Hence, before you actually go ahead and enter your data into the calculator, you must make sure that you are entering the right data into it.
All you have to do is to provide some personal information into the Structured Settlement Calculator. You will also be asked to enter a few details about the settlement itself like the name of the beneficiary, the age of the beneficiary, the payee and the date of the injury. Once you have done so, you will get some information back from the tool. The results of your submission will be shown as to what you are likely to receive as a lump sum. This may vary from company to company and what may be listed under the option you selected may not be the same in all companies.
In order to determine the actual amount that you can get, you must add up the total amount of your settlement along with the total expected payout that your insurance company will pay you every month. Once you have made this crucial step, you will finally have a clear picture of what you will receive. The calculators only help in giving you an estimate on what you will receive but cannot actually provide you with an assurance of what the amount will be once you enter the information. Hence, it is necessary that you verify the accuracy of the information provided by the Structured Settlement Calculator.
Now that you know the possible settlement that you can expect after a court hearing, it is important that you know the potential drawbacks of a structured settlement. One of the primary disadvantages of a structured settlement is that people who choose this option are generally older and / or sicker. They are unable to continue making payments independently and thus need the assistance of someone who can make the payments for them. These individuals are often in a position where they simply cannot pay the agreed amount. This is usually when a lawyer specializing in structured settlements enters the picture.
However, people also have the right to sell a part or all of their settlement for a lump sum amount which will be the basis of their final settlement. Some people do this in order to free up funds that they would otherwise use for certain types of immediate needs such as housing repairs. Another reason why people sell some or all of their settlement to firms offering to purchase structured settlements is to avoid paying taxes on the amount they receive through sale. Though the Internal Revenue Service has stated that the sale of structured settlements is a tax-free alternative to outright bankruptcy, some people prefer to keep their structured settlement as is. In order to determine if this is wise, one must consult with a tax expert. It is important to note that selling or transferring a structured settlement does not relieve one of liability for tax obligations.
When using a structured settlement calculator, it is important to keep in mind the accuracy of the information provided therein. There are many factors that can affect the accuracy of the results obtained such as; how much was paid in total; how many payments were made; and what payment date was attained. Also, since the computation of the value of a structured settlement is complicated, it is not advisable to rely solely on the results of a structured settlement calculator. It is important to consult a lawyer specializing in tax law and structured settlement issues before making a final decision regarding the future of a structured settlement.