Claiming Reimbursement through Cash for Structured Settlement
Life is not always a bed of roses. One may experience odd situation in life such as accident, sudden illness, loss in business etc and sudden requirement of money arises to handle odd situations in life.
Cash for Structured Settlement is method of reimbursement to an injured individual or survivor for certain period or for life. These are periodic payments to an injured person or survivor for a determinable number of years or for life usually, for settling a claim under a legal responsibility. The Terms and conditions may involve instant compensation for legal and medical expenses.
Cash for Structured Settlement may also include long term reimbursement for loss of money. The orderly payment under structured settlement may also include reimbursement for other injuries. The Structured Settlement is far less costly for a person having insurance policy, if it does not involve expenses on litigation. The instrument of structured settlement may also be beneficial for fulfilling income tax requirement.
Origin of Structured Settlement
The method of Cash Structured Settlement began in Canada and USA as a substitute to lump sum payment. The provision of structured settlement is made in statutory laws of many countries such as England, United States, Australia and Canada. There is no doubt in the fact that there is great similarity in the terms and conditions regarding statutory settlement. Different countries have set different standards, rules and regulations concerning Structured Settlement.
Statutory Provisions for Structured Settlement in USA
USA government has made laws for cash for Structured Settlement at different levels of administration such as Federal Level and State level. The Statutory Provisions for Structured settlements have been admired by several of the nation’s social organizations including the American Association of People with Disabilities and the National Organization on Disability.
Requirements for Claiming Structured Settlement in USA
One can claim cash for Structured Settlement in following ways:
One can claim reimbursement through a suit or agreement for orderly payment of damages excluding gross income under Internal Revenue Code section 104(a) (2).
One can also claim Cash for Structured Settlement through an agreement of compensation under any workers’ compensation law that is excludable under Internal Revenue Code Section 104(a) (1).
Responsibility of Structured Settlement
The character of periodic payments is described in subparagraphs (A) and (B) of Internal Revenuue Code Section 130(c) (2). The expenses of Structured Settlement will be born by the party responsible under agreement or suit and it can also be incurred by person who is legally responsible for making such orderly payments. This provison is made under Internal Revenue Code Section 130.
Methods of Cash for Structured Settlement
The claimant party settles a suit with the defendant pursuant to a settlement agreement. In exchange of this activity, the claimant dismisses the lawsuit against defendant. The defendant gets ready to provide a series of periodic payments for certain time.
In this way, the insurer or insurance company has to bear the obligation of making payment to the claimant. This can be done in two ways such as by buying Annuity from insurance company or by transferring periodic payment assignment to a third party. This is done under assigned case.
Under an unassigned case, the property/casualty insurer possesses the periodic payment responsibility and provides it by buying an annuity from a life insurance company, thereby transferring its obligation with a similar kind of asset.
Cash for Structured Settlement is thus a hassle free process.