What Happens to My Structured Settlement if I Die?

Structured Settlement Payments After Death

Structured settlements are a popular option for people who receive a settlement due to a personal injury, medical malpractice, or other legal claim. They provide long-term financial stability by spreading out the payments over a set period of time. However, many people may ask themselves, “what happens to my structured settlement if I die?” before the full payment schedule is completed. In this article, we will explore the options available for structured settlements after the recipient’s death.

Are you considering selling your structured settlement payments? If so, contact DRB Capital at 877-894-4541 to learn more on how we turn your future payments into a lump sum of cash!

Beneficiaries and Other Considerations

One option available for structured settlements is to continue payments to a designated beneficiary after the recipient’s death. This option provides a source of income to the beneficiary and ensures that the structured settlement is not wasted. The beneficiary can be a spouse, child, or other dependent.

However, it is important to note that the terms of the structured settlement will dictate whether this option is available. Some structured settlements are non-transferable, meaning that the payments cannot be transferred to a beneficiary after the recipient’s death.

What Happens to My Structured Settlement if I Die and it’s Non-Transferable?

In some cases, a structured settlement may be non-transferable, meaning that the recipient is not allowed to sell or assign the right to receive future payments to another person or entity. This is often the case when the structured settlement is designed to provide long-term financial support for the recipient, such as in cases involving catastrophic injuries or disabilities.

However, if a structured settlement is non-transferable, it also means that the payments will cease upon the recipient’s death. This means that there will be no further income for the beneficiary, and any remaining payments that were scheduled to be made will not be distributed to the recipient’s heirs or estate.

It is important for recipients of structured settlements to carefully consider their financial needs and options, both during their lifetime and after their death. Recipients may wish to explore options for selling their structured settlement payments in order to access more immediate funds, or they may wish to consider other financial planning strategies to ensure that they have sufficient income and assets to support themselves and their loved ones over the long-term.

Should I Receive a Lump Sum Instead?

Another option available for structured settlements is to sell some or all of the future payments for a lump sum of cash. This option can provide faster access to a large amount of money, which can be used to pay off debt, invest, or make a large purchase. The lump sum payment can be used to provide financial stability for the recipient’s family after their death, or it can be used to fund a retirement or other long-term financial goal.

When considering selling structured settlement payments for a lump sum, it is important to work with a reputable buyer who can provide fair and competitive offers. The process of selling structured settlement payments involves court approval, and it is important to work with a company that will ensure that the transaction is completed properly. A reputable buyer will also provide transparency and clear communication throughout the process, ensuring that the seller understands all aspects of the transaction.

Benefits of Selling Structured Settlement Payments

There are several benefits to selling structured settlement payments for a lump sum. First and foremost, it provides immediate access to a large amount of money. This can be especially important if the recipient has unexpected medical expenses, debt, or other financial obligations. It can also provide financial stability for the recipient’s family after their death.

Another benefit of selling structured settlement payments is the ability to invest the lump sum payment. With careful planning and investment strategies, the lump sum payment can grow over time, providing a source of income and financial security for the recipient and their family.

Additionally, selling structured settlement payments can provide flexibility and freedom. With a lump sum payment, the recipient can choose how to use the money, rather than being limited to the structured settlement payment schedule. This can provide opportunities for travel, education, or other personal goals.

If you have concerns about what happens to your structured settlement if you were to pass before it is paid out, and it happens to be non-transferable, cashing out can be a good option. This can allow you to take care of financial obligations or expenses, while also ensuring you will have liquid cash to pass down to any heirs.

Take Charge and Sell Your Structured Settlement Payments

At the end of the day, the decision to sell structured settlement payments is a personal one, and it should be based on your individual circumstances and financial goals. If you do decide to sell, it can provide immediate financial stability and flexibility, as well as the opportunity for long-term growth and investment. By working with a reputable buyer and having a solid financial plan in place, you can make the most of your structured settlement and achieve your financial goals. Contact us today at 877-894-4541 to get the process started!