Structured Settlements:Facts to consider prior to selling the payments
Written on January 29, 2010 – 4:15 pm | by MichaelZ
The benefits that you can get by owning a structured settlement annuity are invaluable. Structured settlement payments are advantageous in providing financial security on a long term basis for you and your family and the payments as well as interest earned are free from taxes. It is legal to use this money either for any impending emergencies or for an investment with high yielding returns.
The federal law HR 2884 permits you to sell your structured settlement payments without paying any taxes. Two-thirds of states in the United States also permit the sale of structured settlement payments in addition to federal laws. The most important thing in this is that in both the cases the sale has to approved by a court.
Selling Your Structured Settlement
It is fairly easy to be approved in court for the sell of all or part of your structured settlement payments, as long as you can prove that there is a need for the money. Your proof will be examined by the judge to find out whether this transaction is in the interest of you and your family.
As long as you are an adult of sound mind, and you can proved that you and your dependents will benefit from the transaction, the judge has very little reason to deny your case. Your personal appearance at the trial will help in getting a positive verdict. Court approval is not mandatory for selling your structured settlement payments; however the amount and interest will be taxed.
In most cases, the purchasing company you are working with will still buy your structured settlement payments. They take the responsibility of doing the necessary legal work to ensure that the sale finalized. It is unlikely that they charge you for this effort; however, one thing you have to keep in mind is that the amount you receive is taxable without court approval.
Quotations have to be obtained from various purchasing companies for purchasing the settlement. Getting quotations from a number of companies will be in your interest because you could select the best one for you.
In case you are interested in the quotation given by a purchasing company you must send the purchasing company copies of the structured settlement policy. In return, the purchasing company will send you a disclosure document for your signature. This document basically gives the conditions of this transaction. It must be singed and returned.
The next step in this is beginning of the process for court approval. Depending on your state of residence and your insurance company, the process can take up to 90 days. After receipt of court approval it takes 10 days to receive your money.
Tags: buying structured settlement, selling structured settlement, structured settlement, structured settlement brokers, structured settlement companies, structured settlement loans, structured settlement payments
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