Important info

What Is a Structured Settlement?

Sometimes when a plaintiff settles a case for a large sum of money, the defendant, the plaintiff's attorney, or a financial planner consulted in association with the settlement, will propose paying the settlement in installments over time rather than in a single lump sum. When a settlement is paid in this manner it is called a "structured settlement". Often the structured settlement will be created through the purchase of one or more annuities, which guarantee the future payments.
A structured settlement can provide for payment in pretty much any schedule the parties choose. For example, the settlement may be paid in annual installments over a number of years, or it may be paid in periodic lump sums every few years.
One significant advantage of a structured settlement is tax avoidance. With appropriate set-up, a structured settlement may significantly reduce the plaintiff's tax obligations as a result of the settlement, and may in some cases be tax-free.
A structured settlement can protect a plaintiff from having settlement funds dissipated, when they are necessary to pay for future care or needs. Sometimes a structured settlement can help protect a plaintiff from himself - some people simply aren't good with money, or can't say no to relatives who want to "share the wealth", and even a large settlement can be rapidly exhausted. Minors may benefit from a structured settlement as well, such as a settlement which provides for certain costs during their youth, an additional disbursement to pay for college or other educational expenses, and then one or more disbursements in adulthood. An injured person who has long-term special needs may benefit from having periodic lump sums with which to purchase medical equipment or modified vehicles.
In some situations, it will be better for a severely disabled plaintiff to set up a special needs trust, rather than entering into a lump sum or structured settlement. Any plaintiff who is receiving, or expects to receive, Medicaid or other public assistance, or the guardian or conservator entering into a settlement on behalf of a disabled ward, should consult with a disabilities financial planner about their situation before choosing any particular settlement option or structure.

Potential Disadvantages of Structured Settlements

Some people who enter into structured settlements feel trapped by the periodic payments. They may wish to purchase a new home, or other expensive item, yet be unable to muster the resources because they can't borrow against future payments under their settlement.
Some people will do better by accepting a lump sum settlement, and investing it themselves. Many standard investments will give a greater long-term return than the annuities used in structured settlements.

Selling a Structured Settlement

If you have a structured settlement, you may have been approached by a company interested in purchasing your settlement, or may be curious about selling your settlement in return for a lump sum buyout. About two thirds of states have enacted laws which restict the sale of structured settlements, and tax-free structured settlements are also subject to federal restrictions on their sale to a third party. Also, some insurance companies will not assign or transfer annuities to third parties, to discourage the sale of structured settlements. As a consequence, depending upon where you live and the terms of your annuities, it may not be possible for you to sell your settlement.
Keep in mind that companies which buy structured settlements intend to profit from their purchase, and sometimes their offers may seem quite low. You may benefit from approaching more than one company in relation to the sale of your settlement, to make sure that you obtain the highest payoff. You also want to be sure that the company which wants to buy your settlement is established, well-funded, and reputable - you don't want a fly-by-night outfit to obtain the rights to your annuities but to disappear or go bankrupt before paying you the buyout money. You may have to go to court to get a judge to approve the buyout. It is usually a good idea to consult with a lawyer before entering into an agreement to sell your settlement.

Special Considerations

Any person entering into a structured settlement should be on guard for potential exploitation in relation to the settlement:

At Charity Navigator, our primary purpose is helping America's donors make informed giving decisions when they part with their hard-earned dollars by writing a check to charity. In the past few years, however, more and more donors are attempting to help themselves, and help others, by donating their used automobiles to charity. This has become a massive business. In the year 2000, nearly ¾'s of a million people took a car donation deduction on their federal tax returns, thusly lowering their taxes by over $650 million.
As America's car donation system is currently construed, it is easy for donors to benefit greatly by donating their cars, albeit with a little risk. By following these 10 Charity Navigator Tips For Charitable Auto Donations, you can minimize that risk, and maximize the amount that actually gets to charity.

1. Find a Charity That Directly Accepts Car Donations

If at all possible, avoid the for-profit intermediary organizations that advertise so pervasively to handle your car donations. When you work with one of these organizations, they keep the vast majority of the dollars created from your donation. Even the most reputable of the agencies that handle these transactions keep nearly 50% of the car's value for their troubles (other, less scrupulous entities keep 90%, or even more). If you can find a charity that handles the transaction themselves, they can keep 100% of their profits. It's possible that the charities you already support have a car-donation program that you don't know about. Check with them first.

2. If Your Charity Doesn't Accept Cars, Take the Time to Find a Charity That Does, and Still Does Work You Respect

Remember that you're still making a charitable donation, and don't simply give your automobile away to any charity, just because they're a charity. Do a little research, and find a high-performing charity that does the kind of work you like, in the region you wish to target, and does that work well.

3. If It Runs, Drive the Car to the Charity

Worthy charities are going to have to pay someone else to handle a pick-up or a tow. This is yet another cost that cuts into the amount that gets to that organization's programs. If you can get the car to them yourself, do it.

4. If You Have to Use a Intermediary Agency, Research the Percentage that Gets to Charity

The IRS does not require the car donation agencies to contribute a set amount of the auto's proceeds to the intended charities; that amount is negotiated between the charities and the handlers. Try to find an agency that maximizes that amount, and call the charity to confirm that number before you give. The charities are reluctant to criticize the middlemen, because they don't want to lose the dollars they do receive, but state attorney generals are beginning to investigate and even prosecute these for-profit middlemen, for holding themselves out as charities and misleading the public on the amount that is actually reaching charitable causes.

5. Make Sure Your Intended Organization is a 501 (c) (3)

While many organizations can claim non-profit status, donations to 501 (c) (4) organizations are generally not tax-deductible. These are political organizations with permission to lobby our government; like Disabled American Veterans or the National Rifle Association. Make sure your intended recipient has 501 (c) (3) public charity status.

6. Transfer the Car Correctly to the Charity

Some charities will ask you to leave the assignment of ownership space on the charity donation papers blank, so they don't have to re-title the auto. If your charity asks this of you, find another charity. If you don't formally sign your car over to the designated nonprofit, you will be held responsible for any parking tickets that are subsequently incurred, or liable if it's used in a crime. Remember, the charity you give the car to will probably not use your car to deliver meals to the needy, but will simply sell it as quickly as possible. When someone buys it from them at auction and doesn't bother to register that car, it's still yours in the eyes of the law.

7. Value Your Car Correctly

Due to the proliferation of car donations, the IRS became increasingly concerned about how taxpayers valued the vehicles they donated to charity. Over the last few years, the agency stepped up their audits in this area and began to advocate for changes to the laws that govern such deductions. With the passage of the American Jobs Creation Act of 2004, those changes have come. Starting with your 2005 tax return, you will no longer be able to deduct the published fair market value of vehicles worth more than $500. Under the new rules, your deduction will be determined once your car is sold and the charity sends you a receipt indicating the exact amount your car garnered at auction.
 8. Complete Your Paperwork

If your car is worth more than $500, you must complete IRS Form 8283 and attach it to your yearly taxes.

9. Use Fair Market Value (FMV) for the Car

There are several exceptions which allow you to use the Kelley Blue Book or a NADA guide, but you must use the FMV, not simply the highest value listed for the year and make of your car. Use the FMV when:

• instead of selling the vehicle, the charity keeps and uses it,
• the charity makes improvements to the car before selling it,
• your car is sold at a discounted price to a person with a low income,
• or if the car is worth less than $500.

And remember to always get a receipt when you donate the car. Again, the IRS is watching this area very closely.

10. Take the Time to Get It Right

It is true that the biggest winner in the car donation game is usually the donor, and not the charity recipient. But if you take your time, ignore the quick and easy television appeals, and find a reputable, high-performing charity that will make the most of your donation, we can all emerge victorious.

I've noticed that a lot of you are struggling to juggle the surge in new business while still putting in place lasting marketing initiatives and strategy that will ensure your pipeline gets and stays full in 2010. The challenge occurs when you sacrifice your long term profit for short term gains by shelving business development, new equipment, a new hire, and continuing to tackle all of it yourself. So here are my Do's and Don'ts for business growth and success in 2010. I learned the hard way so you don't have to!
Do stay focused on profit activities every day. Don't get stuck in the details.
Do delegate tasks that are repetitive and not profit centered. Don't say you can't afford it, you will get far more done when someone else does the things you aren't good at and don't enjoy.
Do make time to further your business education. Don't make the mistake of remaining stuck in old school ways, when new school is here to stay.
Do learn to leverage the power of social networking. Don't just throw up a profile and expect results; it requires consistent and persistent interaction.
Do include live networking in your marketing mix. Don't think you can retreat to life in your bunny slippers and fail to get out face to face.
Do invest in new technology and equipment (hardware and software) to grow you business. Don't forget you'll have a learning curve, be prepared or you will tear your hair out.
Do create a plan, day by day, week by week, month by month and work it. Don't give up when you hit a hurdle, go around it, through it, over it, under it or redirect.
Do make time for yourself, your family, and your friends. Don't become a workaholic; it is an unhealthy addiction that can ruin your life.
Do take time for your health. Don't ignore those 5-10 lbs (or more) you packed on last year.
Do embrace life, all of it. Don't wait for tomorrow because the present is the gift in today.
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Success is a very precious thing we seek for in every area of our lives. It is as if we are programmed to be successful in whatever we do and we do not accept failure easily. Nothing makes us happier like having success in our business and in our personal relations. Note that not everyone is destined to achieve it since some of us simply never do what it takes to reach it.
I divided the long and complicated path to success into three parts: Learn, Plan and Apply. Because, it comes as a result of the application of well planned knowledge.
Let's start with the "Learn" part. It can be said that in any field of life, either personal or professional, a certain amount of knowledge is required in order to accomplish what we want. We need to learn our lessons, we need to learn our jobs, we need to learn how things work, how this can be done, how that can benefit us and how can this knowledge be applied. This is the collection of information we learn occasionally.
After learning what is necessary, now it comes to organize our knowledge and create a plan on how to apply what we have learned. Pure knowledge itself will not do any good for us if it is not put into action following a well planned knowledge. So, the most important part to reach success is to plan, since it will be our base for our actions. If we have a good plan, no matter how much we know, it will simultaneously turn into action and results will be seen.
Once the plan is ready for action, it is time to apply it by taking the required action. The performance of this part will absolutely depend on the quality of what we have learned and how we planned what action we will take. Now that all the things are set up properly, the only thing we need to do is to take action. Often times, it seems really complicated and the most difficult element, however this is mostly due to lack of our knowledge and the weakness of the action plan.