It is more than likely that if, you have a structured settlement plan, you have been approached by a company interested in purchasing your structured settlement plan, or curiosity about selling your structured settlement may have crossed your mind. Selling your structured settlement for a lump sum amount theoretically sounds good, except, about two thirds of the states have enacted laws restricting the sale of structured settlements. Tax free structured settlements sales to a third party are subject to federal restrictions.
Some insurance companies will not assign or transfer annuities to third parties. This is done to discourage the sale of structured settlements. This of course does not mean you cannot sell your structured, but depending on where you live, it may not be possible to sell the structured settlement.
Keeping in mind, companies buying your structured settlement payments are looking for a profit, so expect a very low offer. Approaching a number of companies will be much more beneficial in relation to the sale of the structured settlement, to obtain an offer in your favor. Making sure that the company that wants to buy your structured settlement is established, well-funded and reputable is what one should be looking for, not a one time buyer, who could go bankrupt before they pay up all that is owed to you.
You may need to have a judge approve the buyout. Consulting a lawyer for the structured settlement deal would be something to consider before entering into an agreement.
Some insurance companies will not assign or transfer annuities to third parties. This is done to discourage the sale of structured settlements. This of course does not mean you cannot sell your structured, but depending on where you live, it may not be possible to sell the structured settlement.
Keeping in mind, companies buying your structured settlement payments are looking for a profit, so expect a very low offer. Approaching a number of companies will be much more beneficial in relation to the sale of the structured settlement, to obtain an offer in your favor. Making sure that the company that wants to buy your structured settlement is established, well-funded and reputable is what one should be looking for, not a one time buyer, who could go bankrupt before they pay up all that is owed to you.
You may need to have a judge approve the buyout. Consulting a lawyer for the structured settlement deal would be something to consider before entering into an agreement.
Taken from the ExpertLaw Library http://www.expertlaw.com/library
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