Subscribe Feed (RSS)Considerations involving the need to sell a structured settlement payment are many and varied. These payments are usually the result of a settlement has been reached in a personal injury or tort lawsuit and will include such features as a payment of settlement money over a defined period of time. These sorts of settlements have grown in popularity over the last several decades.
Commonly, a structured settlement is used instead of a lump-sum payment which — before the 1970s — was the preferred method of paying upon settlement of a lawsuit involving personal injury or some other tort. In most structured settlements, pre-determined amounts of money are paid off over a certain length of time and in installments. Many beneficiaries of such settlements live quite nicely off them.
When it comes to the selling of structured settlement payments, people who do so usually attempt to sell a certain part of their settlement in order to meet certain emergency or near-term needs. Fortunately, there are many financial services companies that are expert in helping people sell a portion of their settlement in order to obtain needed money.
Think of the sale of such a payment to be like having a bird in the hand rather than waiting to try to capture two birds in the bush. Ready cash can be obtained up front rather than having to sit back and wait for money that is going to be paid out on an annual or some other sort of basis. Additionally, federal law generally doesn’t require the payment of any tax on such a sale.
The fact that a structured settlement payment isn’t subject to federal tax can go a long way towards making such a sale attractive, with many of these transactions taking place because of that fact. Such sales can range from several thousand dollars up past a million or more dollars. All such settlement prices depend on the structured payment and how much of it is going to be sold off.
When considering selling such a payment, the first thing to do is to check out the financial institutions or funding sources offering to buy such payments. Make sure that any funding source that is entering into negotiations for the sale of the payment is 100% reputable, is insured and also carries a bond guaranteeing that it can meet its financial obligations. These are minimum requirements.
Keep in mind, also, that the sale of a structured settlement is usually at a discounted rate that is negotiated between the holder of the settlement and the institution buying the settlement. Discount rates vary by negotiation, so be prepared for a little bit of give and take. In some states, the holder of the structured payment must meet with a judge who must sign off on any deal reached.
If the decision is made to try to sell a portion of a structured payment look for a good financial institution or funding source that will provide a quote and a basis for negotiating how much will be offered for the payment. After all steps have been taken and satisfactorily completed on the part of both parties, expect final payment to be made within 90 days of final signature on a contract.
Why an individual might sell a structured settlement payment and how it’s done can be important when someone who has been the recipient of a sell structured settlement payments award or decision is in need of quick money or ready money.
Tags: annuities, annuity payments, finance, law, lawsuits, malpractice, personal injury, sell annuity payment, sell structured settlement, sell structured settlement payment, settlements, structured settlement, structured settlements
