A Structured Settlement Calculator
Structured settlements are usually paid out in a number of different names based upon the specific settlement agreement. Money, increments by installments or cash settlements by personal check are all examples of structured settlements. Sometimes, however, a lump sum settlement is awarded as part of an overall lawsuit settlement. If the plaintiff in a case does not have the funds to pay for court costs and fees before the case is settled, they may receive a payment from the defendant. The amount of money will depend on a number of factors including the amount of damage done to the plaintiff’s reputation, any tax liabilities incurred and the amount of time needed to recuperate completely from the loss.
The use of a Structured Settlement Calculator can be an invaluable tool in determining the value of future settlements. These tools work by providing real life figures with which to compare the total payout to the cost of a structured payment. They will provide the defendants and plaintiffs with the opportunity to enter into a structured settlement agreement that will ensure both parties receive fair compensation. A structured settlement calculator can also be used to determine if a settlement is optimal for a specific case.
One of the most important things a Structured Settlement Calculator can provide the plaintiff and/or defendant is an accurate assessment of the amount of future compensation they will receive. It takes into account the total projected cost of medical bills, home repair and possible living expenses. Some calculators will provide an estimate of the potential tax benefits of accepting structured payments. All these factors will factor into the total lump sum amount that the defendant or plaintiff would receive in exchange for a structured settlement annuity.
Structured Settlement calculators are easy to understand and utilize. In order to use a structured settlement calculator, the applicant must enter the terms of the payment structure into the machine. The information required will then be calculated and presented to the user in a format that can be understood. The results of the calculations will provide the defendant or the plaintiff with an idea of what the monetary return on their annuity will be.
It is important to note that a structured settlement calculator is not an aid to finding a profitable settlement. The figures provided by the calculator are merely guides to help find a payment structure that will maximize the profitability of the settlement payments. The applicant is the one who has to decide how much he/she is willing to accept as settlement payments. Structured settlement payments are best offered to individuals who are at an age where they will be able to comfortably and responsibly pay for the payments. Furthermore, a lump sum may only be paid upon the death of the recipient.
People who are looking for a structured settlement payment should do their homework prior to making any decision. A structured settlement calculator is only a tool that is utilized by applicants who are seeking the maximum return on their annuities. When people are looking for the highest return, they will naturally turn to a structured settlement payment calculator. However, these figures are merely aids to help determine the amount of money that can be received for their structured settlement payments.