Selling Structured Settlement Annuity Payments | How to Sell a Structured Settlement- A structured settlement is a powerful financial tool made exclusively for injured people in a personal injury case. After winning a personal injury lawsuit, you can either receive a lump sum payment or a structured settlement, where you’re provided with regular, tax-free payments over an extended period. Instead of having to deal with the unexpected stress and difficult decisions you have to face when handling a large lump sum of money. Structured settlements are the safest and the most logical (economically speaking) way to go.
What about the need of selling? Is that possible? It is. From buying a house to putting together funds for that vacation you always wanted, selling your structured settlement will give you the financial leeway to do it. But it is advised that you carefully consider your situation before proceeding with the sale. Most financial advisers would recommend you to avoid selling your settlement, if possible. This is because, in the long run, you receive a lot more money from the periodic payments of your settlement plan. With most plans, the money is tax free. So it is always best to collect all the pertinent information and consider all options and routes before deciding which path you will take.
On average, it takes about 45 days for you to receive your money after you sign the contract. The company that we recommend more often than not can get the money in your hand faster than “the average.” Please do note that payment purchase transactions are separate from different states as each state has different laws and regulations regarding such transactions.
Selling a structured settlement can be tricky, not the actual selling part, but the aftermath. What most people don’t realize is the payments are usually tax-free income for many years. When you cash in the structured settlement, there could be a tax bill, and most people don’t understand that when they go to sell it.
Selling Structured Settlement Annuity Payments
We have put together four things to look for and our recommended companies so you can make the right decision. Make sure to research and consider below factors before thinking of selling your future payments:
- Purchase price
When getting quotes from structured settlement companies, the lump sum you are offered can vary by a wide margin. The primary factor determining the purchase price is the duration of the agreement, the sooner your payments being received, the more you will be paid.
- Discount rate
Again, this price will vary from a company to another, make sure to compare and choose the best option. This rate is similar to interest rate a borrower pays for a standard loan. The lower this rate, the better for you as a consumer.
- The reputation of the company
Choose a company with a long history of active transactions. There are some companies that are going through some difficult financial times, so they might be willing to offer you more to get your business, but that also carries significant risk on your part.
- Fees and charges
Depending on your agreement, sometimes costs and fees are paid when selling structured settlements. We give you the most money with the best terms available.
Can I Sell My Structured Settlement?
There are three basic steps you need to follow to sell your structured settlement:
- Find a buyer: After presenting valid reasons to sell structured settlement payments, the first thing you need to do is to choose a reputable company. Look for one experienced in completing the court-ordered transfer process, with an A+ rating with the Better Business Bureau and minimal complaints.
- Start the sales process: The paperwork process starts now. After submitting the proper paperwork (your settlement agreement or benefit’s letter so the transfer company can verify your payments, application, ID), review all the materials to ensure that they are complete and accurate.
- Have your sale approved by a judge: After all the required documents are in place, a local attorney files them in court, which will then schedule a hearing. You’re now in the waiting period. The court will require you to justify why you need to sell it and give assurance that the deed will not put your family’s financial future in jeopardy. Assuming that there are no problems with your transfer request, the judge will approve and sign the order approving your transaction, which is then sent over to an insurance company to wire funds.