Structured Settlements Authority

Tips on selling a structured settlement annuity

Plan ahead this process takes time. From start to completion the process can take two months. Some state laws have established minimum waiting periods for certain steps of the transaction. It will also take time to file papers at the court and to be granted a court date to get the sale of your structured settlement annuity approved.

Before you invest significant amounts of time you need to be aware that when you sell structured settlement annuities, the sale is subject the approval of the court. The state you live in will impact how long the process will take and also the costs involved. Be sure to check the structured settlement laws in your state before you begin.

You get to decide if you will sell your entire structured settlement annuity or just a portion of it. When you receive offers to sell a structured settlement payment they will probably be for the entire settlement. You may not want or need to sell all of your payments. You should only sell an amount that represents what you actually need. Keep in mind that the court will need to approve the sale as being in your best interest.

Structured settlement companies are in the businesses to make money and just as you would shop around for a new banker or broker, you should take the same approach when selling your structured settlement. Just like in any type of sales transaction, you should not believe everything you hear. Be a good consumer and carefully evaluate the offers you receive as well as the companies that make them. Choose a reputable company that is technically competent and works in an ethical manner.

Taxes are an important consideration when you sell a structured settlement annuity. If the court has approved the sale of your structured settlement, you will not have to pay taxes on the cash you received.

Remember that while selling your structured settlement will get you upfront cash, it comes with a price in that you will receive less for your settlement than the total of all your regular payments. With this in mind, you may not want to sell in order to purchase luxury items such as a new sports car or to finance an exotic vacation. An alternate reason might be to use the funds in an emergency situation, or for investment purposes like buying a home, or starting a business. The implications of selling a structured settlement annuity should be carefully considered.