So what do you do to sell your structured settlement? There are some things that you need to think about before cashing in your structured settlement annuity.
First find a company or broker that buys structured settlement annuity.
Buying structured settlement payments is difficult. Find someone who knows what they are doing. Find out how long they have been in business.
See if there are any lawsuits against the company or broker buying your settlement. Your local Department of Consumer Affairs may have records to check.
Engage the company or broker, ask questions, lots of them. Find out if they seem to know what they are talking about or at least bright enough to get back to you with answers. If you feel you are being double talked or they can do everything better than anyone else, look for someone you feel you can trust.
How long will it take to get the Structured Settlement Money?
This is a complicated process it will take one and half to four months to get your money. Anyone who says faster, run don’t walk, because they are not being truthful.
1. You have to go to court in your state to have the judge approve you selling your payments. If you don’t get a court approval you pay a 40% tax. To get this approval can take up to 4 months.
2. The Insurance Company ? This includes both the issuer and the owner of the annuity. These things do not happen overnight. It takes time when dealing with companies.
3 An expert broker or a company that knows the different funding companies and their requirements will save you time and effort.
4 Price for your payments may depend on the rating of the Insurance Company holding your annuity. A company with a lower rating may get less because the profit is lower to the investor.
5. Necessary documentation: Copy of the annuity, the settlement agreement and release, photo ID, recent payment check , any child support payments out standing and application for selling payments. A honest expert can help you gather these documents.
If you add up all the payments and think you are get something close to that figure, your wrong. Why? If you WAIT for your payments, you will get that amount. Your NOT WAITING, someone else is. They want a profit and they have to wait to get their money back, they gave you. $120. paid today is worth $120. $10. a month paid for 12 month is not worth $120. today. Its worth $120. in one year when you get all the payments. This called the time value of money and to many its confusing. Look at other sources for money like family, friends or a bank loan.
You have decided to sell your structured settlement and some questions to ask yourself. What about taxes? As of January 23, 2002 a new law says no tax liability for selling a structured settlement.
Another thing when selling your payments, is selling only a portion. Sell the payments that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell your structured settlement payments in the future .
Selling structured settlement payments now, can result in financial problems down the road. So be careful.
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