5/25/2017

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Selling Your Structured Settlement

After choosing to receive money through a structured settlement, people sometimes decide that it is not in their best interest to have their money paid to them in long term structured payments. They may want, or need, the full lump sum amount in their hands in the short term and do not wish to continue with the structured settlement. In this case, they may look to sell all or a part of the structured settlement.

There are companies that will buy structured settlements. If you are looking to sell your structured settlement, shop around for the best purchase price and, as with everything else, seek the advice of an attorney.

Most states allow the sale of structured settlements but each state has different laws. Certain states require that an attorney be consulted but they give you the option of obtaining one or waiving legal representation. If you decide to go it alone, a waiver has to be signed and advanced approval must be obtained from court under federal and state laws and guidelines.

If you hire an attorney, hire one who is experienced in the sale of structured settlements. An attorney can help you navigate through federal and state laws that regulate such sales and then help lessen any tax obligations that may result from the transfer.

Your attorney should be able to negotiate the best deal for you by examining contracts and making sure that the purchasing company is reputable. This can be accomplished by entertaining offers from more than one company and making sure that your needs are met.

On top of that, your attorney, with the help of an accountant, should make sure that your losses are minimal, including any income tax liabilities. With the sale of structured settlements, there will most likely be losses to you because of the costs required to make the sale happen.

The purchasing company should be investigated thoroughly. It should be licensed, bonded, insured and records of it's payment history should be made available. By being bonded and insured, if the company should go out of business, you will still be able to receive your payments. Note: This is very important.

If you are selling an annuity, there may have to be contact between your attorney, providing you hire one, and the insurance company that issued the structured settlement because there may be stipulations involved in the contract that governs the sale of the annuity.

Even if you hire an attorney to handle the sale of your structured settlement, it is always good to learn all you can before the process begins. And remember, the companies that buy annuities are there to make a profit from your settlement, but what is important is that your needs are being met. In this case, you can accept the fact that a small loss is necessary.

 

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