Structured Settlement Buyer FAQ no comments
There are many reasons why the owner of a structured settlement annuity might need to cash out their long term payments for a one time lump sum. There could be medical expenses that arise, educational expenses for college, or other unforeseen circumstances that require a large amount of money right now. When this is the case, the holders of structured settlements can turn to structured settlement buyers.
Individuals Whose Payments Qualify as Structured Settlements
Not all individuals who receive regular payments own structured settlements that can be transferred through a sale. If you are getting money from an insurance company that comes from the results of personal injury or a lawsuit, then you most likely can. Should your payments not be as a result of claims for workers compensation, then they should qualify as structured settlements. Monies that are received tax free every month and are promised for the rest of your life as life contingent payments also qualify as transferable structured settlements. If you receive payments under any of these scenarios, then you should be able to sell your claim of future payments for upfront cash right now.
How Can A Person Sell A Structured Settlement?
A market place exists for people who have structured settlements to sell. This makes the chances of getting a fair sale price much higher than in simply going to one company with your hat in hand. Using this eBay like marketplace to sell a settlement will allow you to choose from one of six different bids offered by competing companies.
Are Their Risks to Selling a Structured Settlement?
Some people will be afraid that they may lose out by selling their structured settlement. The good news is that such sales are allowed by both Federal and State laws. This is true even if an insurance policy includes an anti assignment clause.
There will also not be any tax penalties in selling tax free structured settlement payments. Federal tax laws actually maintain the special tax free standing of structured settlements when you sell them. This way, you can be sure that you are not going to forfeit a third of the money that you receive in lieu of your long time tax free payments.
The transaction of selling a structured settlement is also without risk because court processes protect the entire transaction. Once your settlement is approved by the court and sold, there will not be any cost involved about which you have to be worried. The money from the sale will then be wired straight into your bank account after it is completed. This means that the seller of the structured settlement will have instant access to these funds.
Is Is Possible to Sell Only Part of a Structured Settlement?
Many people who are in need of cash now and contemplating selling their structured settlement will wonder if they are able to sell only a percentage of it. The answer is yes. The marketplace for structured settlement sales will permit you to sell either your entire structured settlement, or only a portion of it if you prefer.