Massachusetts Model State Structured Settlement Protection Act

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Full text and statutory guidelines for the Model State Structured Settlement Protection Act.

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FAQ

If you have a structured settlement in which you receive your personal injury lawsuit award or settlement over time, you might be able to "cash-out" the settlement. To do this, you sell some or all of your future payments in exchange for getting cash now.

Cashing in a structured settlement typically requires working with settlement buyers or factoring companies. These companies specialize in buying settlements and providing a lump sum cash payout.

A structured settlement is an arrangement in which the settlement payment is paid out over time, rather than in a lump sum. This can help to avoid taxes on the settlement payment by spreading out the tax liability over a longer period of time.

Cashing out a structured settlement can be a good way to access a significant amount of cash. But before making such a significant decision, review all of the costs carefully. If you decide to proceed with a sale, get offers from at least two to three different buyers to ensure you're getting the best deal possible.

Under a structured settlement, all future payments are completely free from: Federal and state income taxes; Taxes on interest, dividends and capital gains; and. The Alternative Minimum Tax (AMT).

Disadvantages of Structured Settlement Low relative rate of return: Structured settlement annuities compare well against traditionally safe investments such as bonds. However, when compared to more risky options like securities, structured settlements generally offer a lower rate of return.

Structured settlements work by providing periodic payments over an agreed schedule. They offer a predictable and steady income stream as an alternative to a lump-sum payment. Understanding how structured settlements work can help you make informed decisions about receiving or selling these types of payments.

Focus on Stability?With a Competitive Return A structured settlement annuity can provide a stable foundation for your client's future. Here's how: Income tax exemption: Structured settlement payments?including growth?are 100% income tax-free.

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Massachusetts Model State Structured Settlement Protection Act