Managing Structured Settlements
- Can I invest my tax-free lump sum settlement and still qualify for tax-free benefits on the earnings?
- Are structured settlement payments considered income for purposes of public benefit programs, such as social security and medicaid?
- I settled my injury lawsuit by agreeing to a structured settlement. My circumstances have changed and I need a lump sum of money. Can I trade my annuity in for a lump sum? If not, can I sell my annuity to someone else for cash? Are there any tax consequences? Do I need court approval to sell? How do I determine what it is worth -- and get the best deal?
- My step-mom who is terminally ill had an accident. Her attorney says that she should take a lump sum settlement rather than a structured settlement because she needs the money now and won't be here to receive the payments over several years. She wants me to get any remaining payments - not a lump sum after she's gone because she is afraid i'll blow it all if I get the full amount at one time. How should she work this out?