How to Sell Structured Settlement Payments

Many people who receive monthly annuity payments under a settlement agreement do not realize they can sell all or a portion of their stream of annuity payments in exchange for a cash lump sum. Getting paid this money can be a way to help fund the current life needs of your family. Receiving the cash now rather than waiting a period of a year or more for a stream of inflexible payments structured in the future can be a big advantage to some people. Factoring is the name of the process of selling ones legal right to receiving future structured payments in exchange for a the present value of that money. This sale becomes a legal contract with the settlement company.

Companies now offer to pay for your rights to receive future annuity payments under structured agreements. The settlement companies offer annuitants the benefit of direct access to cash.

To receive more information please fill out the form on the right.

On January 22, 2002, President George W. Bush signed new protective legislation. This law was designed to protect any individual who has received a settlement annuity as part of a lawsuit or settlement that wishes to sell their structured payments. Under the law a court would have to authorize a transaction to sell future settlement payments. A transaction must in the best interest of the annuitant, their family, dependents or estate to be approved. If a court order and approval is not received, a federal excise tax of 40% would be paid on the total payments sold. This law is intended to help people who receive offers of cash for their annuity payments from being defrauded or taken advantage of by settlement buyers or even their own families.

You have probably seen advertisements urging you to "sell a structured settlement payment". Many beneficiaries wonder if they should sell and cash out, especially if they are in a situation where they need the money. This is a major financial decision and you would be well advised to carefully evaluate your options before making a decision. You need to determine if selling all or even a portion of your guaranteed settlement payments is in your best interest. It usually takes about two months from the date you start to complete a sale and for you to receive the cash when you sell insurance payments. For more information please fill out the form on the right.