How to Sell Structured Settlement Payments Quickly.
Author: FrankReCouperSr. Total views: 9 Word Count: 586
What do you need to know to sell your structured settlement annuity?
A honest structured settlement annuity payment purchaser must be found.
The structured settlement buying company or broker's expertises must be checked. Buying structured settlement payments is not easy.
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.
If the person you are talking to seems genuine and has your interest at heart than you may have the right person. No one has all the answers, but any one who you feel is willing to take the time and make you feel comfortable about what you want to do is the right person. Trust your instincts.
Will I get my money in a week or two?
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. You have to go to court in your state to have the judge approve you selling your payments. If you don't get a court approval you pay a 40% tax. To get this approval can take up to 4 months.
2. We need a copy of the annuity and other documents from the the Insurance Company. This takes time, some companies send it out quickly others will take their sweet time.
3 An expert broker or a company that knows the different funding companies and their requirements will save you time and effort.
4. Check your Insurance Companies Rating? Make sure the Insurance Company has an A rating! Ultimately you will get a higher profit margin when your settlement is sold to larger financial companies. If a company has a lower rating then they may have to sell off settlements at a lower profit margin resulting in a lower price to you.
5. Necessary documentation: Copy of the annuity, the settlement agreement and release, photo ID, recent payment check , any child support payments out standing and application for selling payments. A honest expert can help you gather these documents.
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.
Now that you have decided to sell your structured settlement you will need to take some things into consideration. Ask yourself? Is there going to be a tax consequence? As of January 23, 2002 a new law that governs such sales, does not impose any tax liability for selling a structured settlement.
Another thing when selling your payments, is selling only a portion. Sell the payments 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 your structured settlement payments in the future .
Just keep in mind that the settlement was meant to be dispersed over time and selling the structured settlement may result in financial problems down the road.
Frank ReCouper Sr. is President of FDR Resources and has been in financial services for over 45 years. For more information: http://www.money-now.net/structured_settlement_resources.htm or http://www.rp-capital.com
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About the Author
Frank ReCouper Sr. has been in financial services (financial planning) for over 45 years. Buying structured settlement payments for 17 years and can be reached by going to R
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