What Are The Tax Implications Of Selling A Structured Settlement?
Doesn’t it sometimes seem as if you can’t make any financial move without the government stretching their hand out and asking for a portion of it. They call it taxes, but for most of us it’s just another way we are soon parted with out money. Believe it or not, that same government won’t charge you taxes on the sale of your structured settlement.
The IRS issued Private Letter Ruling 119273-97 which states that selling rights to structured settlement payments would not create a tax liability to the seller. Amazing huh? Be advised, however, that any interest you make on investments with the money is 100% taxable.
MAN ESCAPES ATTEMPT TO LIFE FIVE TIMES BEFORE WINNING MILLION DOLLAR LOTTERY
A Croatian escapes from a door-less plane, a derailed train, a car into flames, a bus crash and other two accidents, before winning a million dollar lottery.
Here’s a story as to how the unluckiest man in the world turned his destiny upside down. Born in 1929, Frane Selak is a Croatian music teacher who gained fame for his several escapes from accidents. In 1962, Selak traveled to Dubrovnik from Sarajevo during which his train derailed suddenly and plunged into the icy river, causing the death of 17 passengers. Though Selak escaped, he only received minor scrapes and bruises and a broken arm.
While traveling to Rijeka from Zagreb, Frane was forced out of the plane as the door blew away from cockpit. Though the freak accident left nineteen others killed, he miraculously landed in a haystack suffering only minor injuries.
In 1966, Selak rode a bus which plunged into a river and crash-landed. Though the incident claimed four lives, Selak escaped unharmed. Four years later, Selak escaped before the faulty fuel pump engulfed the car in flames. Three years later, Selak’s car caught fire, forcing fire through air vents. Though he did not suffer from any injuries, he had to lose much of his hair.
In the year 1995, Selak was hit by a city bus. However, he once again suffered from minor injuries. This was not yet done. A year later he escaped another threat to his life after he drove off the cliff in order to escape the oncoming truck. Though he landed in the tree, he watched even as the car blasted off 300 feet below.
Exactly 13 years later, the heavens smiled back at him. He won an astounding $ 1 million dollars in the Croatian lottery in March 2009.
Said an emotional Selak, “God watched me over all these years, I know.” Selak, however, has refused to fly on a Doritos commercial to Australia on air. He was reported as saying, “I don’t want to test my luck.” He also said he preferred to be either considered as the world’s luckiest man or the world’s unluckiest man. However, he prefers the former.
MAN COMMITS SUICIDE BECAUSE HE BELIEVED LOTTO NUMBERS CAME UP THE VERY WEEK WHEN HE DIDN’T PLAY THEM
Timothy O’Brien in April 1995 shot himself to death he felt his half share of the five-week ticket on the New National Lottery of Great Britain expired before it could have made him a multi-millionaire.
The truth of the matter is, even if O’Brien had held a valid ticket for the usual numbers, he hardly would have won. Under these circumstances, the numbers which came up could have entitled the ticketholders to 47 pound prize and not 3.2 million which he and his partner missed on. And why? Since only four of the six numbers matched those which were drawn.
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Getting More Cash From Your Lottery Winnings
Hitting the lottery is every persons dream. With the money you’ll win you’ll be able to do many things you were never able to do before. At least that’s the way it seems. The truth is that many lottery winnings are awarded through a structured settlement which only pays a small portion of the total amount of the winnings per month. There is, however, a way to get more of your cash now.
Instead of waiting for those monthly payments to arrive, and then saving them up until you have what you need, you might consider selling your rights to all or some of those future payments to a third party. Be sure you’re dealing with a reputable company, though, that has the capital to back up the sale. The Better Business Bureau is a good place to start looking.
NEW JERSEY CO-EMPLOYEES TO SPLIT $ 216 MILLION JACKPOT
Co-workers to decide between $ 140 million for immediate payout or $ 216 million over 26 years
March 22, 2009 About ten co-workers working for an insurance company in New Jersey have decided to split $ 210 million jackpot, owing to the five dollars that each of them kicked into the pool. The valuable winning digits were 26, 32, 35, 43, 52 and 10. Three amongst the lucky winners identified so far are Linda Harrington, Melanie Jacob and Bob Space.
The ten employees, working at New Jersey’s Chubb Commercial Institute announced their win at a hurriedly arranged press conference. Bob space, when asked about the lottery winnings, says, “I checked and rechecked the lottery and I finally sent it to my wife.” Space had purchased 50 lottery number sets for his nine co-workers and himself.
Next day after the win, Space went to work as usual, playing coy. After news of the winnings spread, a lottery official was quoted as saying, “They cannot be considered millionaires at this stage, since the winning ticket wasn’t yet presented to lottery officials.
New Jersey lottery spokesman Dominick DeMarco was reported as saying, “In case you have the winning ticket, sign at the back, put the papers in a safe place and then seek financial and legal advice before talking to us.
Ellis, one of the lottery winners says, “It takes out a lot of stress, besides giving nice cushion in order to help those people whom they want to help. Furthermore, Ellis says, “I am incredibly blessed. I find it extremely difficult to absorb anything at this point.
Having divorced recently, Roth, one of the lottery winners has decided to pay off her bills. The entire thing is cool. I am shocked.
Twelve US states play Mega Million lottery - Ohio, Texas, Washington, Virginia, New York, New Jersey, Michigan, Massachusetts, Maryland, Illinois, Georgia and California.
UNBELIEVABLE BUT TRUE - FIVE LOTTERY WINNERS REDUCED TO POVERTY
Lottery winners share their rags-to-riches-to-rags story for the first time
March 23, 2009 No, this is not due to recession. It is also not due to mortgage repayment problems. Its piles of money, yes, piles of cash magnify problem for some. Following are few unhappy stories of hit men, foolishness, greedy near and dear ones and a dream literally dashed.
Says Evelyn Adams, winner of not one but two New Jersey lottery jackpot to the tune of $ 5.4 million, “Winning lottery isn’t always what it is considered to be. Twenty-three years later, the money is all gone and Adams currently stays in a trailer. Adams further says, “Though I won the American dream, I have lost it too. It was an extremely hard fall called rock bottom for me. I made mistakes. Some I regret, some not. Since I am a human, I don’t go back on it. Hence, I just go forward, one step at one time.
Another lottery winner William Post won close to $ 16.2 million at Pennsylvania lottery in 1988. Two decades later, he lives on his social security number. Says Post, “It was a nightmare and I wished it never happened. Thanks to a successful legal proceeding initiated by his girlfriend and a couple of failed ventures at the persistence of his siblings, it didn’t take time for Post to become a broke. Post now quietly lives on food stamps and $ 450 monthly pension. Said William, “I underwent surgery for heart aneurysm very recently, and, now that I have reached 65 years, lotteries don’t matter to me.”
Meet our third riches-to-rags story. In 1993, Suzanne Mullins won $ 4.2 million at Virginia lottery. Currently, she is under huge debts with a company which lent her the money with the winning amount as collateral. Through 2006, she borrowed $ 197746.15 which she decided to return with yearly checks from the Virginia lottery. The moment the rules changed permitting Suzanne to collect the winning in a huge sum, the remaining amount was cashed in. however, the payments on the loan were stopped. When asked about her debt, Mullins blames the debt on the prolonged illness of the son-in-law who set her finances back by $ 1 million by way of medical bills.
Janite Lee, a Missourian won a sum of $ 18 million in 1993. A generous Lee donated to several causes, giving to community, education and politics. Eight years later, Lee filed for bankruptcy with only $ 700 left in her bank accounts and no cash in hand.
Charles Riddle from Michigan’s Belleville won $ 1 million in the year 1975. Thereafter, he divorced himself, got indicted for selling cocaine and faced numerous lawsuits.
Going by these terrible stories, it is always better to seek help from a reputed financial services company. Most companies have expert financial advisors who always make it a point to deliver proper guidance when it comes to your finances. The one thing common in the five stories was excessive and uncurtailed expenditures. Financial services firm not only ease your worries, but also offer you a peace of mind.