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.
Structured settlement money may be paid in a number of ways:
A. Paid by check
The check is mailed to the most recent mailing address provided to the annuity issuer. It is generally the annuitant’s responsibility to notify the issuer of any change in address. Most annuity issuers send structured settlement checks at least five days before the due date to help ensure timely delivery. The check must still be deposited and cleared before the funds become available for use.
B. Payment by direct deposit (EFT/ACH) most common
Payments are credited to your account on the due date and may be available for use depending on your financial institution’s posting procedures. While some banks may process electronic deposits on the same day, funds may not be accessible for withdrawal until the following day. Please confirm availability with your bank or depository institution. Note: If the payment date is on a weekend or bank holiday, payments may arrive on the next business day.
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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