Structured Settlements Authority

How to Get Cash for a Structured Settlement

Seek Financial Advice about Structured Settlements

Structured settlements are complex and the costs involved with selling a settlement vary with the buyer. If you hire a settlement broker, they are paid a commission by the buyer, which in reality is funded by a deduction in the payment to the seller. While there is a cost, gaining the services of a broker can also have advantages in that they expose prospective sellers to the maximum number of buyers. Structured settlement brokers can have considerable knowledge in the field, which they can share with the lawyer or financial advisor of a seller. Settlement brokers also work to ensure that the sale progresses smoothly. Sellers should always do their homework and compare multiple companies so that they can choose an honest buyer and get the most cash for the sale of their structured payments. Usually there are no out-of-pocket expenses for a person selling a structured settlement; the buyers normally deduct their portion and the cost of the legal expenses before paying the lump sum.

If you are considering selling your structured settlement to get access to some cash, you will usually have a number of alternatives to choose from. It is possible to sell either a part of or their entire settlement annuity. You may want to only sell a few years’ worth of structured settlement payments and also keep some of the benefits of regular payments through the remaining structured settlements.

Because of all these complexities, it is in the interest of the seller to seek out the advice of a lawyer and financial advisor who can guide him regarding the various legal and tax requirements that often vary from state to state. In addition to state laws there are federal regulations that also govern the sale of structured settlements. In some cases insurance companies will not pay the annuities to anyone except the original beneficiary. Laws also require buyers to show the value of settlement sold broken down into the amount paid, and the difference between it and the sum of the future payments. A court will only approve the sale of a structured settlement if it is convinced that the sale is in the best interests of the recipient and his dependents. If the court approves the sale of structured settlement, the proceeds will be tax free for both the buyer and the seller. As you can see, the best advice is to seek our professional help before making any decision regarding the sale of all or part of your structured settlement payments.

Legal Aspects of Getting Cash for a Structured Settlement