Required Process to Purchase Structured Settlements

To sell future payments requires court authorization.The process required to purchase structured settlements involves analyzing client contracts, presenting offers, contacting lawyers, obtaining court approval, and providing lump sum payment in exchange for future payments.

There are several reasons Annuitants need to sell future annuity payments. Prior to seeking out investment companies to purchase structured settlements, Annuitants need to first determine if the sale is allowed in their state of residence. More than 30 states prohibit the sale or transfer of future annuity payments.

Another consideration is tax consequences of obtaining lump sum cash in exchange for future payments. Funds provided in exchange for future payments may also be subjected to taxation at both levels.

Companies that buy structured settlements do not provide full face value. If the state of residence allows the sale of future payments, Annuitants must appear in court to present their case as to how the sale will improve their life. Judges will not allow Annuitants to obtain upfront cash for frivolous purposes.

In states that permit the sale of structured settlements, Annuitants can elect to sell future payments in whole or part. Courts normally do not allow Annuitants to sell litigation settlements in whole, but may authorize if payments are structured for lottery winnings.

Annuitants must obtain transfer of payment rights from the insurance company that guarantees payments. Insurance companies are not required to permit the sale of payments or agree to payment rights transfers.

A trusted source for locating reputable buyers is National Structured Settlements Trade Association at NSSTA.com.

Obtaining legal counsel is the only way to ensure structured settlement sales are properly conducted and adhere to state laws. Lawyers can advise of tax ramifications, assist with negotiations, and help Annuitants ensure they receive fair offers from companies that purchase structured settlements.

Structured settlements Law

Furthermore, do not forget that if you wish to get a good price, you must learn how to negotiate the price of your structured settlement. But, besides these things, there are a few more aspects that you must find out prior to selling your structured settlement payment.

It is fundamental to comprehend that there are a few laws that restrict the sale of the structured settlements as well as purchase structured settlements. And this is because the transactions that accompany the structured settlements are regulated by additional federal regulations. 

Although the structured settlement is free from taxes, in some situations, the lump sum that you might get through the sale might be taxed structured settlement is free from taxes, in some situations, the lump sum that you might get through the sale might be taxed. 

How it Works - Purchasing Structured Settlements

Recipients of structured settlements are permitted to sell their deferred payment streams to a structured settlement buyer pursuant to state statutes that require certain disclosures, notice to the obligors and state court approval. Through such sales, we purchase structured settlements in a certain number of fixed, scheduled future settlement payments on a discounted basis in exchange for a single lump sum payment, thereby serving the liquidity needs of structured settlement holders.

Typically, the structured settlement purchase process works as follows:

Step 1: 

The individual who has a structured settlement and needs access to a lump sum, contacts our sales group.

Step 2: 

We work with this individual to structure the number of payments purchased for enough to provide a lump sum that will meet his/her needs.

Step 3: 

We complete our underwriting process.

Step 4: 

Upon satisfactory review,  we work closely with the customer through a court ordered process, where the transaction is reviewed by a judge.

Step 5: 

If approved, we conduct a final review of the court-approved transaction where we take the court ordered rights to the annuity payments and pay the customer a lump sum. 

If you have any questions regarding structured settlement buyer options, contact our friendly customer representatives at 888-364-6775.