A Structured Settlement can add certainty to a claimant’s financial situation by establishing payments that are guaranteed and not impacted by market fluctuations or downturns in the economy.
What is a Structured Settlement?: When someone is injured and a lawsuit results, often, that lawsuit is settled and both parties agree on compensation. This compensation is often paid out over time in regular payments as a structured settlement. Structured Settlements is a negotiated insurance of financial arrangement where the claimant agrees to resolve a personal injury claim by receiving some part of the settlement in the form of periodic payments on an agreed schedule. Victim agrees to receive periodic payments over the long-term rather than a lump sum up front. It is often designed to provide victims who are sick or have been hurt with a steady stream of future income for life.
Most Common Documents in a Structured Settlement or Sale of a Structured Settlement which need to be Notarized
Transfer" means any sale, assignment, pledge, hypothecation, or other form of alienation or encumbrance made for consideration.
(o) "Transfer agreement" means the agreement providing for the transfer, and any other document used to effectuate the transfer, from the payee to the transferee of structured settlement payment rights of a structured settlement agreement.
"Structured settlement agreement" means an arrangement for periodic payment of damages established by settlement or judgment in resolution of a tort claim in which the payment of the judgment or award is paid in whole, or in part, in periodic tax-free payments rather than a lump-sum payment.
Agreement Sale Structured Settlement: See “Transfer Agreement”
Irrevocable Designation of Transferee as Beneficiary:
"Interested parties" means, with respect to a structured settlement agreement, the payee, the payee's attorney, any beneficiary irrevocably designated under the annuity contract to receive payments following the payee's death, the annuity issuer, the structured settlement obligator, and any other party who has continuing rights or obligations under the structured settlement
Agreement. If the designated beneficiary is a minor, the beneficiary's parent or guardian shall be an interested party. “Dependents" include the payee's spouse and minor children and all other family members and other persons for whom the payee is legally obligated to provide support, including alimony.
Authorization to Release Info: Regarding liens, judgments in connection to any dependent as to child support etc…
Authorization to Release Info: former client, of payee, the 'payee,' has entered into a contract with to transfer and assign certain future structured settlement payment rights.
Funding Instructions: Funds provided in the Purchase Price as defined in the sale agreement.
Return of Non Assigned Payments: Future Pass thru Payment Issuance (Check or ACH)
A Notary Public can facilitate the closing of the documents
Definition Terms Reference:
CA INSURANCE CODE SECTION 10134-10139.5
GOVERNMENT CODE SECTION 984