How can I sell a structured settlement payment?

How can I sell a structured settlement payment

The first step to selling a structured settlement payment is to have an opinion of the amount to be sold and to find a suitable buyer. The internet is the best resource for receiving quotes and information on buyers.

The knowledge that buyers require to conduct a sale includes the state of the seller’s residence and the insurance company. If a seller desires to proceed, he is to submit copies of the settlement agreement and annuity policy.

One can also avail of the services of selling structured settlement payment brokers who are in a position to lead a person to favourable deals. However, sellers should beware that the brokers are not into an entire contract with an underwriter. 

Annuitants can access instantaneous cash by selling off either a part of the whole of their structured settlement to sell structured settlement payment companies. However, there is a cost involved with the process as companies organisations that pay cash upfront to deduct to account for tax and their own profit. 

In fact, selling a structured settlement payment should be avoided as the actual amount received is far less than the amount that one would have actually received in the normal course of events. 

Usually, the seller does not incur any out-of-pocket expenses while selling a structured settlement payment. The funding company pays for the legal expenditures and any upfront costs incurred. The procedure of selling a structured settlement can take up to two months to complete. In order to ensure a smooth sale, one should complete the sale in consultation with a tax advisor and a legal professional who has experience in selling structured settlement payments. 

Sellers should try and understand the underwriting procedure followed by a buying firm; this will help them to receive clarity on the amount that they will receive from the sale of their structured settlement payment. Upon finding the sale to be in favour of the seller and his dependants, a court will allocate an order to the insurance company to send payments to the buyer in future. The structured payment transaction is non-taxable for the buyer and the seller.

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