If you have plans to buy a new home, launch a new business or pay off your son’s student loan, then selling your structured settlement may be a wonderful solution for your desires. If you feel that your current payments are not enough to fulfill your needs, then selling off your structured settlement might give you the key. You can either sell whole of it, in parts or lump sums to meet your immediate needs depending upon the situation. There are many reasons why you might need to sell off your structured settlement. You might be tired of staying in a rented apartment and may have the desire to buy a new one. Even repairing of your old home might need a lot of your money and may even trigger the selling of structured settlement. Also, you might have a wonderful business idea for which you might need a lot of money and can’t be availed through the periodic payments. There might be some great medical expenses which might come in the way or there may be huge debt to service for which the annuity payments might not suffice. Also, you might think of investing in property or stocks which might give you better returns.
Structured Settlement selling aspects and tips
Decide the selling options
In case of partial selling of structured settlement, you will receive periodic payments from the rest of investment. The structured settlement will definitely carry the tax benefits along with. There is another chance that you might sell off the entire investment. This will not give you the tax benefits that come along with the periodic payments but will definitely give you a huge lump sum to invest in a particular avenue. You can sell lump sums over time; this will help you to avail all the tax benefits that come along with structured settlements.
Present value of your payments
It is very certain that you will be selling your structured settlement at a lesser price because the company which buys it expects to earn from the deal. So, the best way to make a great deal is to find out the current value of your annuity payments and understand how the price that you are selling it for has been arrived at. There are a lot of factors on which your payout depends, like market conditions and interest rates set by the Federal Reserve.
Go in depth into the laws
While selling your structured settlement, you have to understand the requirements that are created by institutions which regulate the structured settlement sales. Also, there might be certain conditions documented in your annuity contract which might restrict the sale of your annuity payments. Mostly, the selling off of your periodic payments for a lump sum under the proper set of conditions is perfectly legal. Many states in US have passed the Structured Settlement Protection Act which protects the rights of claimants while also providing rules to allow transfer of your payments to the third party. All the selling related to structured settlement must be approved by the state court judge after he ensures that the reasons behind selling the structured settlement are perfectly legitimate and are in the best interest of both you and the dependants.
Consult an attorney or a financial planner
There might be some minor expense involved in consulting a lawyer or a financial planner but eventually it might save you thousands of dollars. The lawyer can examine the agreement thoroughly and make sure that your rights are protected. They can definitely warn you against poor valuation of your structured settlement or even help you save a lot of money in taxes. According to the structured settlement selling process, you should be represented by a lawyer before the judge or the court approves the sale. The factoring company does allow you the provision of a lawyer but it doesn’t stop you from having your own. If it does, then it’s a warning sign and you should better look for another buyer.
Examine and compare different structured settlement buying offers
You should shop around and look for various structures settlement buying offers. Many buyers and brokers quote highly specific conditions. There are some offers which might appeal to you and it is therefore very essential to make a comparison before deciding on the offer. There are many other factors apart which you should look into. The price of the quote is equally important as many other factors like selecting the right buyer in the process. The company which is buying your annuity payments must be completely licensed and must have lots of years of experience in such matters. Also, it should understand your specific needs and the offer that is made should be made taking into consideration your needs at the moment.
Selling structured investment is a very troublesome and lengthy process; it does involve a great deal of time and energy. A lot is dependent on the buyer you choose. Even if you extremely pressing financial needs, do take out time to research and choose the best quote and the experienced buyer who understands your specific needs. If you compare options and ask questions, you will definitely get the best out of your structured settlement deal and save a lot of money as well.