There Must Be a Court Order Issued Prior to Selling

On January 22, 2002, President, George W. Bush signed into law a bill that protects individuals when selling their structured settlement payments to meet unplanned future financial needs. This new law makes all structured settlement payment sales subject to a court order. If there is no court order, a tax that is equal to 40% will have to be paid on the total amount of payments being sold. This new law helps those individuals from being defrauded.

Simply put, this bill works in conjunction with state laws directing how these transactions are to be completed. The bill benefits and protects individuals and makes it clear that annuity providers will suffer no tax consequences as a result of these transactions. The bill does tend to be a bit unambiguous as it states that annuity owners and providers do not now, nor have they ever owed taxes as a result of such transactions. The structured settlement purchasing industry was created in answer to the needs of recipients whose situations had changed. We at Structured Settlement Info wish to help you understand this industry as well as inform you of your rights. You now have the protection of the law when entering into any and all agreements to sell structured settlement payments.

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