Already Have a Structure?
So you've already made the smart decision to choose a structured settlement? Here are common questions we often hear from people about their structured settlement:
What if I misplace or lose the paperwork on my settlement?
Normally, if you have misplaced your paperwork, a copy can be obtained from a variety of sources. Contact the company that is responsible for administering your payments, your attorney, the company that settled your case, or the broker that assisted you with the structured settlement during the settlement.
What if my check doesn’t arrive when it is supposed to?
Checks are typically mailed several days in advance of the due date. Structured annuity companies will usually ask you to wait a few days beyond the due date to account for occasional slow mail delivery. It will then stop payment and reissue a check. Exceptions can be made, but reasonable period of time usually is required before the company reissues a check. Many annuitants find that using EFT (electronic funds transfer) or direct deposit is convenient and
eliminates concern of lost or late checks. Ask your payment provider if EFT is available.
Can I use my benefits as collateral for a loan?
Normally, you may not use your structured settlement payments as collateral for a loan. The reason is that the federal law designed to provide these benefits to you on an income tax-free basis also prohibits you from assigning or encumbering them.
Can I restructure my payments into a lump sum?
Again, the federal law that assures the payments you receive are on a tax-free basis also prohibits converting your payments into a lump sum.
Someone has offered to purchase my structured settlement payments. What should I know before I agree to sell them or use them as collateral?
It is important that you seek the advice of a trusted attorney. If you do not have an attorney, you may wish to consult with the attorney who originally negotiated your case. If you cannot reach that person, you might also want to consider contacting the office of your state’s attorney general.
Forty-seven states and the federal government have enacted structured settlement protection statutes that establish strict conditions for "structured settlement factoring transactions." Under the federal law, court oversight and approval is required for injury victims who choose to sell payments from a structured settlement to a third-party company.
Also, you may be interested to know that the Consumer Federation of America, the American Association of People with Disabilities, the National Organization on Disability and many other consumer and disability advocates have publicly called attention to the practices of firms engaging in the purchase of structured settlement payments.
How do I change my beneficiary?
You may request a change providing the terms of your settlement or the payment provider do not prohibit such a request. The request should be made in writing. In some situations the original beneficiary or contingent payee may need to sign off on a change before it is made.
Can I add my spouse’s name (or someone else’s name) to my benefit check?
No one except the individuals specified in the Settlement Agreement can be made the payees on your checks. Exceptions may be made as the result of a court order.
Do I earn interest on these payments?
The interest is built in to your benefit payments. It is not itemized separately but is already added into the benefit you are receiving. Remember, you are receiving these benefits income tax-free. In contrast, interest earned outside of your structured settlement normally is subject to income taxation.
