Quick Cash for Your Structured Settlement Payments.
Author: FrankReCouperSr. Total views: 9 Word Count: 595
What do you need to know to sell your structured settlement annuity?
A company or broker has to be found, who deals with the sale of structured settlement annuity payments.
Find out how long the company or broker has been in the structured settlement industry. Given the level of difficulty in the industry, the company or broker should have a solid background.
You should also consider checking to see if there are any lawsuits being filed against the company or broker. - contact your local Department of Consumer Affairs.
Engage the company or broker, ask questions, lots of them. Find out if they seem to know what they are talking about or at least bright enough to get back to you with answers. If you feel you are being double talked or they can do everything better than anyone else, look for someone you feel you can trust.
When will I get my money?
If you have been told that you can get your money within a few days ? do not commit! In fact, it may take a month and a half or longer depending on the following:
1. A Court Order is required. It is now required by all states for a court order to be issued. If there is no court order, a tax equal to forty percent must be paid on the total amount of payments being sold. Do not fret, this is a good thing ? it makes selling your settlement a little safer.
2. The Insurance Company ? This includes both the issuer and the owner of the annuity. These things do not happen overnight. It takes time when dealing with companies.
3. What kind of payments do you have (quarterly, semi, annual, or are they a lump sum)? Different funding companies have their own requirements and it's critical for your broker to know these requirements. Do your homework on the company or broker you choose - you will get your money faster and with a lot less hassle.
4. Its good to have an A rated Insurance Company holding your annuity. Selling lower rated companies annuity payments, will get paid less money. Investors are looking for the safest investment for their money.
5. In addition to the above you will need the necessary documentation such as copies of the following: The annuity, the settlement agreement and release, photo ID, recent payment check and application. These are some of the things to consider. For now it gives you a good idea of what's required.
What will Cashing Out Cost Me? Most likely you are going to be some what disappointed in the amount you receive. Total up all the remaining payments and know that cashing out will offer you much less than that. They based the structured settlement on a certain amount of money put into an annuity and then that principal amount, plus interest paid out, equaled the settlement amount. Consider other options before selling your payments.
Selling your structured settlement isn't easy. What about a tax consequence? IRS in a private letter ruling said that there isn't any tax liability for selling a structured settlement.
When selling your structured settlement, think about selling only a portion that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell a structured settlement payment in the future.
Know that your settlement was meant to be used over time and selling it now can leave you with money problems down the road.
My Articles Directory Free Web Content Provider
About the Author
Frank ReCouper Sr. has been a financial planner for over 45 years. 17 of those years dealing with structured settlements and lotteries. For more information go to:Selling a Structured Settlement or Structured Settlements Get a totally unique version of this article from our article submission service
Copy and Paste Article Code.
Remember: The article body, title, author bio and links may not be changed or removed. By publishing this article, you agree to all the terms in our Terms of Service.