Monday, August 10, 2009

Selling Structured Settlement Be Smart About It

There are so many important elements to consider when it comes to selling a structured settlement. You need to make sure that you do need to go about selling structured settlement in order to obtain a lump sum payment of money quickly. You also need to find a qualified broker who can handle the selling structured settlement for you. You also need to find a company that is interested in what you have to sell – in other words, a company that purchases settlements. Selling structured settlements is simple in some ways but more complex in others.
Selling a structured settlement means that the money you received from a personal injury claim or a workers’ compensation claim in the past will no longer be yours anymore. Think about selling a structured settlement very carefully before you take action. Is this the best financial move for you at this time or not?
Speak to those you trust and those whom you value the opinions of about selling structured settlement. See what pearls of wisdom regarding selling structured settlement other people have to impart to you.
If selling structured settlement is what you choose to do then it is important that you choose the right company. What does the right company for selling structured settlement have to be?
To start, if you are going to go about selling structured settlement then you want to sell to a company that is stable, secure and on good footing. Selling your structured settlement should also go only to a company that is ethical in its business practices and treats its employees well.
Selling structured settlement is a serious matter and should be treated as such. Don’t sell to just any company that shows an interest. Selling structured settlement should be done with a level head and an awareness of what the entire transaction entails! Selling structured settlement is something that can affect your life so be smart about it whatever you do! Do research about selling structured settlement- a lot of research!
Selling a structured settlement once you have found an appropriate buyer will take anywhere from 10 to 14 days for everything to be completed. That is how long it will take to get your lump sum from selling the structured settlement. It is important to bear in mind when selling a structured settlement that the court must give the okay for the sale to go through before the money will be released to you.
Think carefully about selling structured settlement. This is the exact same advice you would give to someone else who was in your shoes, wouldn’t you? Selling a structured settlement is a very big deal and should be treated as such.

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Monday, August 3, 2009

How to Sell a Structured Settlement

Introduction

  • If you are receiving structured settlement payments, but have a sudden need for cash, you may be able to factor the arrangement in return for a lump sum payment. This is done by selling the rights to receive the payments in return for a payment from an investor who is looking to receive future income.

Step 1: What are Structured Settlements?

Turn your structured settlement into cash Creative Commons Photo from borman818
Turn your structured settlement into cash Creative Commons Photo from borman818
  • When law suits are settled, damages may be awarded in a lump sum, or a series of payments. A settlement which is awarded in a series of payments over time is called a structured settlement.
  1. A plaintiff may prefer a structured settlement as there may be tax benefits available depending on their individual circumstances.
  2. Defendants can purchase annuities to fund the payments, allowing them to pay the judgment with a lump sum, even though the plaintiff is receiving future payments.

Step 2: How to Sell a Structured Settlement

  • If you have large medical expenses, or have experienced a sudden financial emergency, you might wish you'd taken a lump sum payment instead of a structured settlement. Even if you have received a structured settlement, you might be able turn it into cash by selling it to an investor. The process may take up to 90 days. Here's what you need to know before entering into a contract to factor your settlement:
  1. Approximately two thirds of states restrict the sale of structured settlements.
  2. Federal law restricts the sale of tax-free structured settlements.
  3. If the settlement is funded by an annuity, the insurance company may not transfer the benefits to a third party.
  4. You may need to go back to court to have the sale approved by a judge.
    1. The judge will evaluate the circumstances to determine whether the seller will actually benefit from the transaction.
    2. The judge may also evaluate the impact of the sale on the seller's heirs.
  5. Because of the legal issues involved, you should consult with an attorney before selling your settlement. Source
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