How to Sell a Structured Settlement & What is a Structured Settlement
We advise our customers to sell only just enough of their settlement to cover their current needs – like medical expenses, education costs, new home purchase or debt elimination.
Settlement Capital develops each solution around a customer's specific needs and offers a variety of purchase options, including:
- Partial payment purchases
- Full payment purchases
- Guaranteed and life contingent purchases
We will do everything possible to get you enough money to meet your current financial needs. Our minimum funding amount is $10,000, and you can be funded as much as $1,000,000 or more depending on the size of your transaction.
If you have question about how to sell a structured settlement and the laws that regard selling your payments, we can guide you through the process. Federal law, HR 2884, which took effect on July 1, 2002, provides a safe harbor for any individual wishing to cash in their payments. Over two thirds of the states have laws that allow the sale of structured settlements and insurance payments.
You can be confident that your settlement will be handled in compliance with all laws. Settlement Capital has attorneys on staff that will answer your questions. Most states give you the option to seek legal, financial, and/or tax advice before entering into a purchase and sale agreement. Some states have made this mandatory, while others require you to sign a waiver if you choose not to seek independent legal or financial advice.
Your transaction will be reviewed by a judge. Most judges carefully review each file to determine if the transaction is indeed in your best interest while considering the support and welfare of your dependents. Judges realize that people like you may not have access to traditional credit sources and the only way some of them can reach their financial goals is by selling a portion of their settlement payments. As long as the seller is an adult of sound mind, has a legitimate need for this money and can prove to the judge that selling is in the best interest of both the seller and their dependents, the judge has little reason to deny the transaction.
Federal law requires that every transfer meet certain conditions. With this in place, the courts consider the support and welfare of your dependents before giving permission to transfer payments. The court confirms that the transfer is in everyone’s best interest.
Your chances of approval go up significantly if you are able to appear in court. The judge may ask you questions as to why you want this money and your presence in the room will help the judge approve your transaction.
Finally, there are no tax consequences. A new law, HR 2884, specifically states that neither the issuers, owners nor annuitants will suffer tax consequences as a result of these transfers.
We understand the process of how to sell a structured settlement can be overwhelming. But at Settlement Capital, we’re here to guide you every step of the way.
Source : http://settle4cash.com/how-to-sell-a-structured-settlement.htm
What is a Structured Settlement?
That said, your personal injury attorney should alert you to the following benefits of the arrangement. You don't have to pay federal or state taxes on the payments that come to you at various intervals. The fact that you won't have a large pot of cash at any one time makes you less attractive to con men and malicious trustees and provides an inherent safety net against poor investing or overspending.
Moreover, your structured settlement can anticipate changes to your medical welfare and adjust accordingly (in some cases). Plus, the arrangement is often easier on defendants who may not have a large amount of cash to pay out at one time to deal with the lump sum payment.
Congress first developed the structured settlement arrangement in the early 1980s, and since initial legislation was passed, thousands of cases have been adjudicated according to the system.
Don't just consult your personal injury attorney about whether or not to opt for this method. Work with a financial planner and a trusted family accountant to develop a sound money management plan based on your working capacity (which may be diminished as a result of the accident for which you are suing for redress) and your expected future liabilities.
Remember that a large settlement may appear at first capable of covering your expenses for the rest of your life, but when you subtract out attorney's fees, taxes, and cost of living extrapolated over decades, you may be left with very little per year.
It is possible to lend out or even sell your structured settlement payments to outside entities. However, discuss any unorthodox presale options with your personal injury attorney or another financial advisor first, since irrevocably losing your settlement payments can really upset your financial or medical future if you are not careful.
Source : http://www.superpages.com/supertips/what-is-a-structured-settlement.html
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