With the advent of the internet it has become easier than ever to sell your structured settlement payments. Just go on-line and do a search under the term “structured settlement”. Look for companies that have been in business for at least 15 years, which are Better Business Bureau members and have handled 1,000s of transactions. Contact them over the net or by phone, and get a free quote on the payments you want to sell. If they are really net savvy, they will be able to send you the paper work over the net and quickly conclude a transaction with you.
Using the net can speed up the process of closing a transaction and make it much easier experience!
Popularity: 92% [?]
Share This
If you are receiving structured settlement payments and are interested in selling those payments, try to deal directly with companies that will buy the payment from you. There are some persons out there that claim to be willing to act as your “broker” to get you the best deal. You can usually do much better just looking for a company that will buy your payments directly from you. The reason is that the broker will charge you a fee for his or her services and that fee could easily exceed any price improvement they might achieve.
The companies that buy direct will give you competitive price quotes and there is simple no need to use a broker.
Popularity: 93% [?]
Share This
Many years ago it became obvious to attorneys and others involved in serious tort litigation that some plaintiffs would be better off with a settlement where the payments would be made over time rather than all in a lump sum (a “structured settlement”). At that time the concern was primarily flowing from cases where the plaintiff needed to pay medical bills over their expected life. However, there were uncertainties under the IRS code on how to accomplish this without adverse tax consequences, and while creative tax attorneys felt that they had a workable solution, everyone involved realized that a clarification to the tax code would be preferable. In the mid-1980s the tax code was amended to expressly permit structured settlements of personal injury cases where the payments over time would remain tax free.
If an injured party chose a structured settlement the defendant or their insurance company, though a special purpose entity, would purchase an annuity that would fund the structured payments. The annuity is the source of the future payments dispersed at predetermined intervals for the length of the settlement agreement.
Structured settlements appear to be an acceptable financial option for the majority of people that select them. Nearly all structured settlements stay intact through the full intended term of the settlement. However, on occasion a settlement recipient my have a change in their life circumstances that requires them to have a larger sum of cash.
For this reason, states began passing legislation allow for a settlement recipient to convert their future payments into cash. The first state to pass the legislation was Illinois in 1998. Today 46 states have “transfer statutes” that allow settlement recipients in need to convert their future payments to into a lump sum.
Popularity: 97% [?]
Share This
Nearly all structured settlement arrangements remain intact through the full intended term. Industry estimates approximate 95% of structured settlements remain whole for the length of the agreement.
This high statistic illustrates that most recipients of structured settlements are accepting of their decision to accept a structured settlement instead of a lump sum.
That means that only a minority ever encounters a situation where their needs have changed to the point where they have a more immediate need for cash and determine to sell some or all of their structured settlement payments. It is good to know that few ever have this situation but for those that do it is equally nice to know that they have options. Settlement recipients that are in need of cash can transfer all or some of their payments to a transfer company for a lump sum payment.
Popularity: 98% [?]
Share This
When considering selling some or all of your future payments for lump sum cash you may want to consider what you can get for your remaining payments. To properly determine how much your payments may bring today you need to factor in the “time value of money.”
The time value of money refers to the calculation of how much a future payment is worth in today’s dollars. The value of a future payment is less today than in the future as funds received today can be invested and earn a return. So the value of $100 dollars today is greater then the value of $100 in ten years from today.
To learn more about the Time Value of Money click here or call a Structured Settlement Transfer company that can tell you what they would pay for some or all of your future payments.
Popularity: 97% [?]
Share This
Most structured settlement recipients are not aware that it is possible to sell only a portion of a structured settlement and still receive future payments. In fact, it is actually common for recipients to sell only a portion of their payments to meet their immediate financial needs. This way they receive lump sum cash for the payments they transfer and maintain ownership of the remaining payments. They will continue to receive their scheduled payments for the portion of the settlement they did not sell.
One of the many benefits of selling future payments from a structured settlement is the flexibility. This option provides settlement recipients with the ability to meet their specific short term financial needs.
Popularity: 97% [?]
Share This
The last post described the role and benefits the “primary market” plays in the structured settlement industry. Today’s post will focus on the secondary market.
The secondary structured settlement market helps those individuals that have received a structured settlement but have had a “life change” or pressing financial need for a larger sum of cash. Examples may be someone going through a divorce or having a child that will be entering college or the accumulation of debt.
When a recipient has an immediate need for a larger sum of cash then their settlement payments provide, they have the option of converting their future payments to cash.
The secondary market not only meets the immediate need for cash but also provides flexibility so that one can choose to sell some or all of their payments depending on their situation. If they choose to sell some of their payments they will receive a lump sum payment as well as some of their continued payments for the original structured settlement.
Popularity: 67% [?]
Share This
There are two sides to the structured settlement industry that often cause confusion. The next two posts will examine the differences between the “primary market” and the “secondary market” and the value each provides.
Primary Market
The primary structured settlement market helps negotiate structured settlements between an injured party and the defendant (often an insurance company). If the defendant offers to settle the case with a financial award the plaintiff often will have a choice of receiving a cash settlement or a structured settlement. A structured settlement is set up to make periodic payments to the injured party to help them meet their ongoing financial needs.
A “Primary Market” broker will help negotiate the terms of a structured settlement working with the injured parties attorney and legal counsel for the responsible party.
Structured settlements are widely accepted as an excellent financial arrangement with an estimated 97% of all settlements staying intact over the life of the agreement.
However, in some cases a structured settlement recipient may have change in their life circumstances which changes their financial needs that their settlement can’t meet. In these few cases the individual can consider converting some or all of their future payments to a lump sum in the secondary market.
Popularity: 45% [?]
Share This
The first state to pass legislation enabling one to convert future payments to cash was Illinois in 1998. Since then 46 states have passed “transfer statutes” making it not only legal but easy for one to receive a lump sum payment for their settlement.
The four states that do not have legislation allowing for the sale of a settlement are:
● Wisconsin
● North Dakota
● Vermont
● New Hampshire
If you live in one of these four states you still likely can convert your payments into cash. Accommodations can be made to allow for this, contact a structured settlement transfer company for further assistance.
Popularity: 45% [?]
Share This
This post will focus on the legal process you can expect to unfold during the sale of your structured settlement payments. As mentioned in the previous post it is not typically required to have a lawyer present at the court hearing unless you live in the few states that mandate it. The steps in the legal process are handled by the company you are transferring your payments to and include:
1. Contact local legal counsel
There will be an attorney present provided by the company you are working with to convert your payments to cash. The attorney will handle the process and the proceedings on your behalf.
2. File petition with the court
The attorney will file a petition with the court regarding your request to sell some or all of your future payments.
3. Requests a hearing and court date:
The attorney will request a court date for a judge to review your case.
4. Send notice of transaction to all interested parties:
A notice is sent to all interested parties to inform them of your intention and of the court date.
5. Go to court:
The attorney will handle the proceedings and request the judge to approve the sale of your settlement payments.
6. Receive signed order:
The judge (typically) will approve your request and sign an order allowing the transfer of your future payments into cash.
Popularity: 44% [?]
Share This
