A honest structured settlement annuity payment purchaser must be found.
Find out how long the company or broker has been in the structured settlement industry. Given the level of difficulty in the industry, the company or broker should have a solid background.
Go to your local Department of Consumer Affairs to see if there are any lawsuits being filed against the company or broker buying your settlement.
Talk at length with the company or broker, ask him / her questions and get a feel for how knowledgeable they are. Trust your gut feeling! Steer clear of those who promise much more money or can get it faster than others. If it sounds too good to be true, then it is.
When will I get my money?
It's going to take a minimum of 1 and a half months to 4 months. Anyone saying less time is not to be trusted.
1. You have to go to court in your state to have the judge approve you selling your payments. If you don't get a court approval you pay a 40% tax. To get this approval can take up to 4 months.
2. The Insurance Company ? This includes both the issuer and the owner of the annuity. These things do not happen overnight. It takes time when dealing with companies.
3. What kind of payments do you have (quarterly, semi, annual, or are they a lump sum)? Different funding companies have their own requirements and it's critical for your broker to know these requirements. Do your homework on the company or broker you choose - you will get your money faster and with a lot less hassle.
4. Its good to have an A rated Insurance Company holding your annuity. Selling lower rated companies annuity payments, will get paid less money. Investors are looking for the safest investment for their money.
5. Copy of the annuity, the settlement agreement and release, photo ID, recent payment check , application, any child support payments out standing and ect. are what are required. You get the idea of why you need someone who knows what they are doing.
What will Cashing Out Cost Me? Most likely you are going to be some what disappointed in the amount you receive. Total up all the remaining payments and know that cashing out will offer you much less than that. They based the structured settlement on a certain amount of money put into an annuity and then that principal amount, plus interest paid out, equaled the settlement amount. Consider other options before selling your payments.
You have decided to sell your structured settlement and some questions to ask yourself. What about taxes? As of January 23, 2002 a new law says no tax liability for selling a structured settlement.
When selling your structured settlement, think about selling only a portion that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell a structured settlement payment in the future.
Just keep in mind that the settlement was meant to be dispersed over time and selling the structured settlement may result in financial problems down the road.
It is possible for recipients of a structured settlement payment to sell a part of the amount for a lump sum that can be used for meeting some near-term expenses. The process of transferring one’s rights to a structured payment to another party for a sum is referred to as factoring. The first step should be to assess whether one is actually required to sell a structured settlement payment or an alternative is available. The amount of money available with these transactions is inversely proportional to the period of the settlement. It is important for a seller to be aware of the lowest value for which he is willing to sell his structured settlement payment.
The sale of a structured settlement has to be approved by a court. The approval depends upon the court’s assessment of an annuitant’s need for immediate cash, his capabilities in managing a substantial amount of money, and whether the interests of annuitant and his family will be served by a sale of annuities. If a structured settlement is sold without prior court approval, it attracts a federal excise tax of 40% on the amount sold.
There are various laws instituted by states across America for regulating the sale of a structured settlement and protecting the seller from unscrupulous buyers. Buyers are bound by law to disclose the amount that is transferred. This amount is compared against the amount made available to the seller. The interest rates charged by buyers have a significant impact on the actual amount received by an annuitant. Therefore, it is important to take the services of companies that offer to buy structured settlements at competitive rates and can design a solution to meet an individual’s requirements.
When comparing companies for carrying out such a transaction, it is worthwhile to compare their track records in terms of integrity, financial soundness, and reputation. Free quotes can be obtained from different companies, there are no obligations attached with these quotes. One can also take the services of a settlement broker who has the necessary experience in dealing with settlement purchasers.
Both Frank Recouper Sr. & George Hostetler are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Frank Recouper Sr. has sinced written about articles on various topics from Finances, Family and Finances. Frank ReCouper Sr. has been in financial services (financial planning) for over 45 years. Buying structured settlement payments for 17 years and can be reached by going to