Structured settlement funding

Structured settlement funding is when a company provides an annuitant money for their future payments that were awarded from a lawsuit. Many times, in order to settle a lawsuit, the two parties will agree to a payment stream which is also known as a structured settlement. The payment stream is  the compensation to the plaintiff instead of receiving a lump sum of cash at the time of the settlement. Usually these payment streams are setup for an extended period of time such as the life of the annuitant with a guaranteed period to go to a beneficiary. When a company provides for structured settlement funding, the company will usually buy payments within the guaranteed period so that the structured settlement company can ensure that all payments will be made to them in the future. Some of the more experienced structured settlement companies may offer to buy payments outside of the guarantee period in order to provide a solution to someone who needs money today. Buying payments without a guarantee period can be difficult and take longer to complete then a transaction where all the payments are guaranteed. Depending on the situation of the annuitant will determine the best course of action in working with a structured settlement funding company.

In order to receive the Structured settlement funding, one must receive approval from a judge. Each transaction is governed by a structured settlement act, which varies slightly from state to state, that is designed to provide full disclosure and provide for a judge to review the transaction to verify that the transfer of the annuity payments is indeed in the best interest of the annuity holder. Most of the structured settlement funding companies offer to cover the entire court and legal fees needed through the process to transfer the payments. The structured settlement act requires that the annuitant receive a disclosure that sets down in writing all costs or fees that may be charged in order to completed the transaction. This provides the annuitant an opportunity to know exactly what they are going to receive from the transfer. This should eliminate any surprises at the time of funding. Structured settlement funding of the annuity payments will depend upon one’s own home state and the insurance company or annuity company that issues the annuity payments to the customer. As long as the company is following the statute in the state where the annuitant resides then the transaction complete quite seemlessly. Since the structured settlement statute requires that a judge determine that the transfer is in the best interest of the annuitant, it is important to have a need that is reasonable. If you want to buy something that you don’t need, there is a good chance the judge won’t approve the transaction. For example, if the goal of selling the payments is to buy a brand new boat, then the judge may not approve the transfer. That means the company and the customer have spent a couple months working on the transfer only to have it denied.

In order to get structured settlement funding, you will want to have a reasonable need and be able to use the funding to pay for that need. If the statute is followed, then you should be able to receive the money you need today.