Cash For Structured Settlement
Getting Cash for Your Structured Settlement
Okay, so you're thinking about getting cash for your structured
settlement. Well there are some questions that you need answers to prior
to getting cash for a structured settlement annuity. Firstly, you should
find out how long the broker has been in the structured settlement
environment. They should have some kind of solid financial background as
it is a very difficult business to be in. You should also find out if you
are getting the wholesale price for your annuity. Additionally, check to
see if there are any lawsuits filed against the company you are dealing
with - contact your local Department of Consumer Affairs or the office in
the state where the company is located.>>
What will Cashing-Out Cost me?
You may be a little disappointed to find that what is offered to you, is
not what you expect. If you were to add up all of your remaining
settlement payments, you will find that the amount offered is much less.
The structured settlement was based on a certain amount of money that was
put into an annuity and then that principal amount, plus interest paid
out, equaled the settlement amount. This may make you consider other
options other than getting cash for your structured settlement.
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Cash For Settlement Payment
Deciding on Getting Cash for Structured Settlement Payments
If you are happy with receiving your money in payments, then you should
not sell. There are many people who are quite content receiving monthly,
quarterly, or annual payments for a period of years. However, more often
than not, people find themselves in situations where a lump sum of cash
can really bail them out of a bad situation or help with other expenses.
Perhaps your situation has changed recently and you now could use a
substantial amount of cash for a specific purpose.>>
Selling your Structured Annuity
An annuity is a stream of income or payments from an insurance policy that
was set up to provide you a set amount regularly. An annuity can be sold
to a funding source in its entirety, or just for a specific term or number
of payments under the annuity. The sale of the annuity allows you, as the
holder, to gain immediate access to the entire amount or a portion of the
remaining payments instead of waiting years to get the full face amount.
Selling your structured annuity allows you to do as you see fit with the
money, without the restraint that is imposed by the annuity itself.
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Cash For Future Payments
Knowing Your Options
If you are a recipient of a structured settlement or an annuity, you
should know your options. This of course includes receiving cash for
future payments. Recognized by congress since 1982, structured settlements
provide long-term financial security to personal injury victims and their
families through a stream of tax-free payments that are usually tailored
to their needs. As a result, structured settlements generally have become
an inherent part of physical injury settlements.>>
Is it legal to get Cash for Future Payments?
Yes it certainly is. Although your settlement agreement may include an
anti-assignment or anti-acceleration language, it has now been supported
by numerous court cases that an annuitant does have the right to assign
the payments. During the past five years, there have been numerous State
statutes that have been passed that regulate the transfer of any payments
and a court order is required. In accordance with the recently enacted
law, any transfer is subject to court approval. If court approval is not
obtained, then the purchaser must pay an excise tax on the total discount.
This tax is onerous enough to prohibit a purchaser from making a purchase
without following the legal steps. >>
Cash For Annuity
Getting Cash for an Annuity
A structured settlement is an annuity that results from a lawsuit and is
designed to pay out over time. Things change however, and now you may need
the money. In order to get cash for an annuity, you must obtain a court
order that grants permission for the sale. There are brokers that will
handle all of the details in getting cash for annuities and you should
check around for the one who offers the largest amount and the experience
to deal with such matters. >>
Is it Legal and How Does it Affect the Insurance Companies?
The answer is yes. It is definitely legal. Not only is it completely
legal, but corporate America as well as many wealthy individuals have been
buying and selling contracts and income streams in order to improve their
cash flow, and meet their financial obligations for years. For a long time
this information was a well-kept secret from the general public. The truth
is that there are funding sources across the United States who are buying
these types of annuities regularly. >>
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