TriMark Capital Funding, Inc.

The structured settlement is a settlement option that provides an alternative to a lump sum cash settlement offer. Structured settlement payments are guaranteed. They may be established as installments over a specified length of time (i.e., monthly for 10 years), in future lump sums (i.e., annually for the next five years), or a combination of installment payments and lump sums.

Historically, personal injury, wrongful death and product liability lawsuits were settled by the payment of a single lump sum cash payment in exchange for the release of the claim in a lawsuit. Under this type of arrangement, it was the responsibility of the individual and their family to manage the large lump sum of cash and invest it wisely so they could use it to provide for the victim’s medical and income needs over their entire lifetime. Structured settlements laws have been passed recently that help reduce the difficulties faced in these types of situations and to help provide the claimant and their families with long-term financial security.

Structured settlement payment agreements are fairly unique because they are written to focus on the beneficiary’s financial needs and provide payments for a certain period of time or throughout the injured persons lifetime. Formally recognized by the U.S. Congress in early 1980’s, structured settlements are voluntary compensation agreements (albeit they are usually forced into existence by virtue of a lawsuit) between an injured person or persons and a defendant.

With a structured settlement, the beneficiary receives a series of periodic payments instead of a single cash lump sum. Many settlement agreements are entered into privately (i.e. either prior to, or during, a trial) while others, often involving minors or persons deemed mentally unfit, may be created by a court order.

Structured settlements are a creative solution because the payment amounts and the future annuity timetable are completely up to the parties negotiating the structured agreement. Rather than receiving a single lump sum, victims can receive a customized stream of tax free annuity payments, individually tailored to meet their present and future cash needs. Using structured settlements, annuity payments may be in equal amounts at regular intervals, or they may be paid in periodic lump sums. Larger intermittent payments are sometimes used to provide for anticipated future needs such as funding; a college education, medical equipment replacement (motorized wheelchairs), or planning for retirement. The possibilities for setting up structured settlements are limited only by the imagination. It is important to note however, once the parties have agreed to the structured settlement annuity amounts and timetable, it becomes a legally binding contract and the annuitant cannot make changes.

While this may seem like the best course of action at the time the settlement is reached, annuitants frequently discover that, over time, they encounter unanticipated cash needs. Opportunities avail themselves, needs and desires change, lifestyles change, and sometimes annuitants find themselves in a situation where a larger lump sum of cash would be more beneficial than the smaller payments.

This is where a buyer of structured settlements like TriMark Capital Funding, Inc. can help. The annuitant can sell some, or virtually any combination or portion, of their annuity payments and get a lump sum of cash for structured settlement proceeds. Because of the decaying effect of the time value of money, it is not normally prudent to sell all of their remaining annuity payments at once.

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