If you receive periodic payments from a structured settlement
annuity, perhaps you have considered selling either a portion
or all of your future payments to get needed cash. More than
two thirds of US states now allow individuals receiving
structured settlement payments to sell them, though there are
also federal laws which govern this type of transaction. Before
choosing a buyer for your structured settlement annuity
payments, you should become familiar with the basics of the
sale process and what to expect from a reputable buyer of
structured settlements.
Although some may wish to attempt it alone, it is always
prudent to seek the advice of an attorney with experience and
knowledge of the laws governing the sale of annuity payments
and structured settlements. In fact, in some states, legal
representation is mandatory. One of the most important
functions of the attorney will be to protect you from unforeseen
circumstances like refusal on the part of the insurance
company that issued the underlying annuity to cooperate with
the structured settlement buyer. An attorney, unlike a broker
who works with the buyer, will represent your interests.
As of 2002, federal law requires those wishing to sell their
structured settlement payments to obtain court approval before
the transaction can take place. The requirements also vary
from state to state. These laws were enacted not only to
protect sellers, but also to protect the insurance companies
that own the underlying annuity from incurring any tax liability as
a result of the sale. The court will examine the financial need of
the seller and whether or not the proposed sale is in their best
interest. Your attorney can help you prepare the necessary
documentation to submit to the court. If you have chosen not to
avail the services of a lawyer, most well known structured
settlement buyers will bend over backwards to help you obtain
court approval and complete the sale in a timely manner.
When you sell structured settlement payments, the amount of
the lump sum you receive will be somewhat less than the value
of the future payments. The lump sum is based on the present
day value of the settlement; that is, without any interest the
annuity would have earned. The buyer will also take a portion
of the proceeds in fees. When all is said and done, you will
likely receive less than 50 percent of the value of the future
payments. Do some comparison shopping and get some free
quotes online before you commit to one particular buyer.
Whatever the reason you have decided to sell your structured
settlement or annuity payments, you probably have a pressing
financial need looming in the future. The last thing you want to
do is wait to receive your money. However, with the necessity
of gaining court approval, from the time you sign the initial
contract with the settlement buyer to the time when you receive
your money, it can take up to 90 days if everything goes
smoothly. In fact, beware of anyone offering to purchase your
payments who promises to get you your money in less than 60
days. They are probably not being completely honest with you.
Don't allow your emotions to cause you to make any hasty
decisions you may regret later.
If you are considering selling your structured settlement
payments for a lump sum of cash, you should choose a
company that has the competence and experience to get you
the greatest amount of money possible. The Structured
Settlement Alliance works with the best direct funding sources,
not high commission brokers, so you will find the right financial
institution to purchase your annuity payments. Your personal
information will remain confidential, and you will receive the
information and advice you need to make this important
decision.
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