News and Tips on structured settlement transfers.


Selling a Structured Settlement – What You Should Know

In case you have high hopes of turning your structured settlement into some sort of windfall overnight, think again.  There are a few things you should know.  Have a seat.

Have Reasonable Expectations.  Buyers of structured settlements are in business to make a profit.  Before they can even hope to profit, they’ve got to cover their costs:  staff costs, communication costs, legal fees, and so on.  That’s why buyers offer so much less for your settlement than the combined amount of the payments you would otherwise receive.  This is the discount rate – a sort of reverse interest rate used to scale back your annuity payments to a lump sum the buyer can afford to pay you, and still come out ahead.

Don’t be in too much of a hurry.  A typical structured settlement sale involves getting offers; providing documents to support the payment stream; getting advice from lawyers and/or financial advisers; a “cooling off” period mandated by the laws of your state; a court appearance (usually); and sending the finalized court order to the annuity insurance company.  Typically, even if everything speeds right along, this will take 45 – 60 days, at least.  If you were hoping for money sooner than that, you need to look elsewhere.

Have a really good reason.  As pointed out above, you’re not going to get more money on this deal than you would have received over time.  So, you need to have a good reason – a really, really good reason, for cashing in your annuity.  A financial emergency that can be resolved through the lump-sum of your sale might be a good enough reason.  But if you’re just looking for a one-time payment for play money, or to sink into some iffy investment, you’re probably making a mistake.

Watch out for yourself.  This is a big decision.  Even though you should get legal and financial advice before selling your settlement, and even though a court will look over the deal before approving it, you are still your best advocate.  You will still need to do due diligence on the prospective buyers, looking at how many complaints they’ve racked up with the Better Business Bureau, and determining if they’re reputable.  You will still need to read all of the contracts and agreements every step of the way, to make sure the buyer hasn’t changed terms on you.  You will still have to make sure all your questions are answered about this deal, the discount rate, all the fees you’ll be charged, and make sure you’re comfortable with your decision to sell.  Unscrupulous players are everywhere.  And even if everyone’s honest, any lawyer or financial adviser can make a mistake, so you must always look out for you.

If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.

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