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Structured Settlements - How to sell a structured settlement payment?
This article provides
step-by-step instructions for selling structured settlements. What is a structured settlement? Structured settlement is an insurance or financial arrangement which includes periodic payment plans through which a claimant agrees to resolve a personal injury negligence claim.
- The first and most important step for selling a structured settlement is by having an idea of amount sold and finding a (suitable) buyer. Internet is one of the best resources for gathering and compiling info about structured settlement buyers and prices. The information buyers need to make a sale includes the state of residence of the seller and insurance company’s details. If a seller wishes to continue, you must submit copies of the settlement agreement and the annuity policy.
- You can also use the services of a structured settlement broker whose job is to able to lead people to favorable agreements. However, it should be kept in mind by sellers that intermediaries or structured settlement brokers are not in exclusive contracts with insurers.
- Pensioners can have immediate access to cash or through the sale of part or all of your structured settlement company’s settlement, but there is a cost involved in the process, as companies pay cash in advance to account for the deduction of taxes and their benefits and in fact tying to sell a structured settlement needs to be avoided because actual amount received by the person is much more below the actual amount that would have been earned in the normal course of occurrence.
- Usually, the sellers do not incur out-of-pocket expenses when selling a structured settlement payment. The firm is the one that pays the legal dues and any pre-paid expense made. The whole process of selling structured settlement payments can take anywhere from one and a half to two months. For ensuring a better and smooth sale, the total sale should be made with the consultation of a lawyer and a tax advisor and both of these people should have good expertise in selling structured settlements or payments.
- The last step is that the seller should try to understand the whole selling process followed by signing of the purchasing company, which will help him/her in obtaining greater clarity on amount he/she has received from sale of structured payments. After finding out that the sale has gone in favor of seller and its dependents, the court will make an order for insurance company for sending finances or payments to buyer in the future. This transaction will not be taxable.
This was my article on how to sell a structured settlement payment. If you have any questions, let me know.