Structured Settlement Payment

What Is A Structured Settlement Payment?

A Structured Settlement Payment is a lump sum of money that is paid in monthly, annual or lump sum payments over time that was awarded through a court case, lottery wining, or possibly a workers compensation case. Usually these are negotiated between the two parties to allow for an income to the plaintiff or it may be to allow an easier settlement.

Should You Sell Structured Settlement Payments?

Some annuitants who have been awarded these yptes of contracts ask themselves if there is a way that they may cash in a portion of the structured settlement payment in return for cash to use today. Many times annuitants don’t know that they can sell their payments. The answer is generally yes, but the payments would need to be sold to a third-party to receive the cash now. There are a few considerations in determining whether to sell the structured settlement payment today. First, in order to sell the payment to a third party, you must understand that there is a requirement to receive court approval at a court in your area. This approval is based upon whether the transfer is in the best interest of the annuitant. A structured settlement company that has experience and a depth of knowledge in this industry will be able to guide you through this process to give you the best success in selling the annuity payments. An additional consideration is that the money received today will be less than the aggregate of the payments over time. Consider that when the annuity was setup a smaller amount was put into the annuity to pay the larger amount over time.

What is the Process To Sell A Structured Settlement Payment

The process for selling a structured settlement payment is based upon a structured settlement statute in your state. Most states have this statute that has very clearly defined regulations and procedures that must be followed in order to sell a structured settlement payment to a structured settlement or annuity company. Once you have built a plan to receive the money you need from your structured settlement payments, then the next step is to receive what is called a disclosure statement. The disclosure statement lays out the terms that were agreed upon. After a period of time from three to 10 days, then you are able to enter into a contract for the sale of those structured settlement payments. You will need to provide a series of documents which will evidence the structured settlement payment, which is usually in the form of a settlement and release agreement and an annuity contract from the company that is paying you. After these have been completed then you will go to court and a judge will rule on the transfer. After the ruling then you are eligible to receive the lump sum of cash for the structured settlement payment.

If you are uncertain of the process then contract us and we can help you determine the best plan for you to get the money you need today from your structured settlement payment and walk you through the process to sell the structured settlement payment.