Why Not to Sell Structured Settlement for a Lump Sum

Why Not to Sell Structured Settlement for a Lump Sum

There are a many good reasons to sell a structured settlement for a lump sum (or at least to convert some of it to cash now). With that said, there are a lot of bad reasons to sell a structured settlement.  As we say over and over, every circumstance is different and every person has different reasons to seek a lump sum. Obviously, if you are taking the take to read this article (and the time to find it through a search on the internet), then you are at least considering your options.

You Do Not Want to Gamble You Future When Selling a Structured Settlement

You Do Not Want to Move When Selling a Structured Settlement Keep in mind that no one rule applies to everyone.  There are certain circumstances that it simply makes sense no matter what to convert a structured settlement to a lump sum but those situations are rare and in most cases, whether or not it is a good idea to sell a structured settlement depends on what you intend/need the lump sum for.  

 

Luxury items are generally not the type of thing one should sell a structured settlement to obtain. While who would not want a nice boat to get on the water on a warm day- selling a structured settlement for this type of acquisition would ordinarily be considered a bad idea. Notably, when you sell a structured settlement that is from a personal injury settlement, the law requires an independent judicial officer to find the decision to do so is in your best interest.  It is, of course, true that no 3rd party could truly understand your position or the full scope of why you might want/need/prefer to get a lump sum, the reality is that you will in most cases have to convince this third party that it is indeed in your best interest.

Selling a structured settlement for a speculative investment might not be in your best interest either.  The very purpose of most structured annuity payments is to provide you with a stable source of income and therefore if you are sell or assign the payments you will lose that benefit. Consequently, as with any large financial decision, you should think long and hard.  Of course,  its your money and making a decision how and when to spend is something you ultimately do control and are responsible for you.

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Can a Structured Payment Be Sold for a Lump Sum?

How Much Can I Get for My Structured Payment? We Can Make an Offer

How Much Can I Get for My Structured Payment? We Can Make an Offer

Can a Structured Payment Be Sold for a Lump Sum? 

For those of us that buy structured payments for a living, we are intimately familiar with the different types of structured payments.  The most significant difference when it comes to determining whether a structured payment can be sold is not the amount, timing or source but instead another element. Let us step back for a second.

Structured settlement payments, which are made by annuity issuers (like Metlife, Pacific Life, John Hancock, New York Life, Symetra) are frequently bought and sold by many structured payments. The largest and most well know structured payment buyer is JG Wenworth/Peachtree Finance. There are other structured payment buyers, however.  When it comes to structured settlement payments you can sell them and find a buyer- generally speaking.  Some structured settlement payments may be too large and others may be due too far in the future but by and large a structured settlement can be bought and sold to one of several purchasers.

There are other types of structured payments that are not so easy to sell and/or may not be “sellable”.  For example, there are structured payments from:

1. annuities

2. lottery winnings

3.  retirement funds

4.  life contingent annuities

5. workers compensation

You Can Be More Than a Matter of Pennies if Your Sell Structured Payments Without Speaking to Us

You Can Be More Than a Matter of Pennies if Your Sell Structured Payments Without Speaking to Us

7. Veteran affairs disability payments

8.  IRAs

9. Pensions

10. Inheritances

11.  Jackpots from casino winnings.

When it comes to any of the above, as well as other structured payments, whether they can be bought by third parties (i.e., assigned to a buyer for a lump sum) depends in large part on the state and federal laws that apply.  For example, a lottery winning may be freely assignable and sold in one state (for example Massachusetts) but if you one the lottery in a different state you may not be able to sell it for a lump sum. In some cases, you may be looking for a loan for structured payments instead of selling structured payments but many of the same laws apply.

With years of experience and a desire to assist every person that calls in looking for a lump sum for structured payments, we will find a way to assist you if possible.  Whether you are selling small structured settlement, large annuity payments, deferred life contingent payments due in the future, our team will get you a lump sum whenever feasible.

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4 Companies that Buy Structured Settlements

4 Companies that Buy Structured Settlements in the United States

Nationwide Structured Settlement Buyer 800-317-3769

Nationwide Structured Settlement Buyer
800-317-3769

When Congress passed 26 U.SC 5891 a new era was born in the transfer and assignment of existing structured settlement payments for a lump sum.  No longer did these transactions happen outside the review of the judicial system but instead each and every sale of a structured settlement was subject, and in fact, was required to be reviewed and approved by state judicial or quasi judicial officers (depending on the type of structured payment at issue). In time, after the passage of the federal law so precisely referred to in the opening sentence above, legislators in many of the states in the Union met and discussed enacting state laws, consistent with 26 USC 5891, that would permit a resident of their state to sell a structured settlement payment or series of payments, or parts thereof, for a lump sum.

What we now have in the United States are very state specific laws that govern how a company may buy structured settlements while complying with the Federal Law found in the I.R.S code and the state specific laws found in the Acts passed by the legislation.  Each of these legislatures, after reviewing the issues at hand, came up with different laws regarding the sale of structured settlement payments.  Some laws, like in Maryland, require that a structured settlement seller MUST, without exception, meet with a lawyer to discuss to the legal, tax and financial implications of selling a structured settlement- while the majority of the other state laws DO NOT require that.  Some states, like California, impose 10 day disclosure periods (the time between receipt of the disclosure statement and when a person may sign the contract agreeing to sell structured settlement for a lump sum.

In time, the companies that buy structured settlements regularly have come to know the ins and outs of these particular laws quite well. Some buyers may have specific knowledge about how to properly process a structured settlement in one state while others, because volume and experience, may be well versed in the laws from Alaska to Florida, and everywhere in between. Call around and speak to several companies and get a feel for not only the state law that will have to be complied with but also that structured settlement buyers familiarity with that particular Act.

At CSF we have been at at this for a long time and take pride in being nationwide experts. Call us, Get a Quote and Find Out Why the Sophisticated Structured Settlement Seller Picks Us When It Comes Time to Getting a Lump Sum.

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