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Structure Settlement FAQs

Frustrated with your structured settlement arrangement?  Let LightHouse Legal help you out.  We’ll purchase your insurance settlement payments, leaving you with the lump sum you desire.  You can learn more by browsing some of our frequently asked questions below.

What are Structured Settlements?

Personal injury lawsuits are nothing new.  Millions of Americans suffer from accidental injury each year.  Typically, these individuals opt for a structured settlement—regular payments over many years instead of one lump sum. However, as bills, college tuition, and other expenses begin to pile up, people find themselves needing that lump sum. In order to make this election, the plaintiff must sign a Settlement and Release Agreement that allows the defendant to purchase an annuity policy to provide for the payments to the annuitant. The annuitant does not own the annuity there for does not have the right to sell the annuity. He does have the right to receive the payments and can sell them to a third party.

How much will I receive?

The amount you receive depends on:

  • The amount and time table of the payments
  • The party who is making the payments
  • The current interest rates

How Quickly Can I Get My Money?

Keeping in mind that every cash conversion is different, after you’ve signed the contract, it takes about 60 to 90 days to receive your money.

What if I want to sell only a portion of my payments?

That’s fine! Oftentimes, people don’t need the entire lump sum.  They simply need a portion just to get out from a financial emergency. LightHouse can structure an arrangement to buy a portion of each payment, buy payments for only a period of time, or propose a lump sum payment. Each transaction is personalized to your needs, allowing you to retain part of your cash flow.

Will it cost me?

Absolutely not! LIGHTHOUSE COVERS YOUR COSTS. We want you to sit back and collect your cash without a worry in the world.

Will I owe taxes on this money?

Thanks to a Private Letter Ruling 119273-97 issued by the IRS, an individual’s sale of structured settlement payments will not create a taxable transaction. In addition, HR 2884 confirms this ruling. We do encourage you to contact your accountant just as a safeguard.

How Much Are My Payments Worth?

Submit a request for a free quote and find out!

Will I Be Protected?

As of now, 40 states have passed laws that work with existing federal laws which spell out clear rules for the sale of periodic payments for a lump sum of cash. Court orders are issued ensuring the best interest of the client.

Can this be done on worker’s compensation settlements?

Regrettably, only personal injury settlements that meet the criteria under IRC 104(a)(2) can be transferred under the federal and state transfer acts.

Who is LightHouse and what do they do?

Based out of Langhorne, PA, LightHouse Legal Finance, LLC, offers a cutting edge approach to lawsuit funding.  Our firm’s combination of financial and legal experience allows us to provide a service that’s second to none.  And it’s this method which has led us to become one of the fastest growing firms in the legal financing industry.