by John Darer® CLU ChFC MSSC CeFT RSP CLTC
"If you have a structured settlement can you get the money midnight on the date your (sic) supposed to get the money?" asks someone searching on Google.
A structured settlement may be paid in a number of ways:
A. Payment to you directly by check
Check is mailed to the most recent mailing address that you provided the annuity issuer. It is generally the annuitant's responsibility to notify the annuity issuer of a change in address. Most annuity issuers will mail your structured settlement check 5 or more days before the due date in an effiort to assure that the check arrives on time. You still have to deposit the check and wait for it to clear before being able to use the funds.
B. Payment by direct deposit| electronic funds transfer| ACH (most common)
Payment is in your account on the due date and may be avilable for use, depending on your financial institution's posting procedures for such payments. Some banks may receive an electronic deposit today, but not make the money available to be withdrawn until tomorrow. Check with your bank or depository institution.
C. Payment to a trust account
Payment is made by either of the above methods into a trust account set up on your behalf at the time of settlement. The trustee of the settlement trust will be guided by the trust document as to any withdrawals. Have a conversation with your trustee concerning your immediate needs.
D. Payment to a Medicare Set Aside account [Structured MSA]
Payment is made via either of the above methods. Use of funds in the account is restricted. Extreme care must be taken, if self administering the MSA, to avoid using MSA monies for anything other than the intended purpose which is to protect Medicare's interest by paying for medical expenses arising out of the injury in the legal or workers comp action, that would otherwise be covered by Medicare.
Medicare Set Aside | How Structured MSA Saves | Why MSA?
Image: Edyta Pawlowska|Dreamstime
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