Sell Structured Settlements

Are you interested in how to sell structured settlements?

If you have entered into a structured settlement agreement (for whatever reason) and at some point in time find yourself in difficult financial circumstances, it is possible to sell all or part of your annuity payments for a lump sum cash payment.

The procedure to sell structured settlements is quite straight forward. The process is called ‘Factoring’ and involves a company  purchasing the legal rights to receive your future annuity payments. Such a company would purchase these legal rights from you for an agreed one-off cash lump sum payment. The sale of your structured settlement becomes a legal contract with the settlement company with whom you made the original structured settlement agreement.

In most cases the cash offer a company will make for your structured settlement will be considerably lower than the money you would receive from your full compliment of fixed annuity payments. This of course is how the interested company makes their profit on the deal.

Since 2002 it is now necessary for a court of law to authorize a transaction to sell structured settlements. This is a process put in place to protect the interests of the settlement recipient and the support and welfare of his dependents before giving permission to transfer annuity payments. If such approval is not received, there is a federal excise tax of 40% payable on the total payments sold.

In considering your options, it’s best to do a little research and compare several quotes and their terms to see what you can expect for your settlement. Most companies provide a free quote over the phone or online. Simply complete the online form details and a quote will be provided for the amount you would receive if you sold your structured settlement. You will need copies of your settlement agreement and annuity policy to be able to answer some of the form questions.
When it comes time to take some action, it is worth securing the services of a financial advisor or a specialist settlements broker if you are looking to sell structured settlements and protect your interests. Sound professional advice can save you a lot of time and hassle in completing the necessary processes whilst also protecting your financial interests.
Many people use the services of a settlement broker when they want to sell structured settlements. A good broker will answer specific questions you may have, provide the necessary documents and call upon their experience in the settlements claims process and related taxation matters. Most brokers also have relationships in the legal fraternity and with potential settlement buyers which can make the process a lot easier for you.

When you proceed to sell structured settlements, the whole process will take about 8 weeks if you engage experienced legal and financial advisors or a reputable settlements broker. If you do sell structured settlements, you may choose to use your lump sum payment in any way you wish.