Who Will Buy My Structured Settlement?
A structured settlement is one of the most attractive, even ideal, long-term investments on the market. They are often guaranteed for multiple years (sometimes for life) and are tax-free. Structured settlements are commonly awarded to those involved in a personal injury lawsuit or a product liability claim.
Sometimes, however, a structured settlement is not as effective as it should be. This often happens in instances where some sort of financial stress (for example: medical bills, a large debt, a new investment) is eminent in the person’s life that is receiving the structured payments.
In instances like these, you have an option. You can sell your structured settlement for a one-time single payment. This large amount of money can then be used to get your financial life back under control.
But whom can you sell your structured settlement to?
Structured Settlement Companies
The primary way to sell your structured settlement is to contact a structured settlement company. These organizations specialize in buying structured settlements and paying a lump sum payment to the seller. Fortunately, there are dozens of these companies in each state, so finding one to sell to shouldn’t be a problem.
Choosing the Best Structured Settlement Company
While finding a company to sell your structured settlement to might be a walk in the park, finding a good company to deal with won’t be quite as easy. A good structured settlement company is one that is reliable and gives you the biggest return on your sale as possible.
Here are a few surefire ways to find the best structured settlement company for you:
- Reputation – It is essential to only deal with companies that have sterling reputations. Make sure that the one you choose is part of the Structured Settlement Brokers Association, a trade group focused on the industry. This group provides a Code of Ethics that all members must follow and polices its members so that nothing unscrupulous is going on.
- Reviews – Use the Internet to its fullest when looking to sell your structured settlement. Read reviews on each company you are interested in – there are literally dozens of reviews available – to weed out the ones that are less than stellar.
- Free Quote – Ask the structured settlement companies that you are interested in for a free quote. This will give you a solid estimate on the amount of money you will get from selling your structured settlement to them. Keep it in mind that this is not a final amount. It is merely a quote.
- Use Your Gut – Always take stock in your personal feelings when looking for a company to sell your structured settlement to. If you are uneasy about a particular company, it is best to look elsewhere. Your money is at play here and you want to get as much of it back as possible. You want to get what you deserve from selling your structured settlement.
Finding the Right Buyer from Structured Settlement Company Reviews
Over the past few years, there has been a dramatic rise in the number of structured settlement buyers currently operating. Chief among the reasons for this rise is a growing familiarity with structured settlements and a struggling economy that is forcing many people to sell off their annuity payments.
Those that have a structured settlement they want to turn into cash to get out of a financial hole have several options. While it is nice to have several structured settlement companies to choose from, it can also make the final decision much more difficult. Sometimes it is easier to pick a great company when there aren’t a lot of options to sweat over.
Fortunately, along with the rise in the number of people using these companies, has come a rise in the number of reviews. There are currently hundreds of structured settlement company reviews available online. If you are interested in selling your annuity for cash, it is essential to look closely at these reviews.
Here are a few of the best tips on how to make the most of structured settlement company reviews:
- Make a List of Companies in Your Area – Selecting a local structured settlement company to sell your annuity to is generally going to be your best bet. This way you can work with them in person. Start by making a list of the companies in your area.
- Start With Reference Recommendations – Though it isn’t very likely that you will know someone who has sold an annuity for cash before, it can be a smart idea to ask around. Ask friends, family, and acquaintances if they know anybody who has. Track these people down and ask them for their recommendations. Were they happy with the company they chose?
- Research the Companies Online – After narrowing down your list to the companies in your local area (and possibly working in a few references), research each company online. Reviews are very easy to find with a simple Google search. There are a number of review websites that specialize in reviews in the structured settlement industry.
- Ask for Free Quotes – After narrowing down your list even more by looking at structured settlement company reviews online, it is time to ask each of them for a free quote. A free quote will give you an estimate on how much you can expect to receive by selling your annuity.
- Meet With a Financial Advisor – Your last step before deciding on a company should be meeting with a financial advisor. Be certain to find one with experience in selling structured settlements. They will be able to go over your plans with you to make sure that they are what you really want to do.
Even though it might not be ideal, sometimes selling your structured settlement payments to a company for a single cash payment is necessary. But don’t go with just any company. Use the tips above in addition to structured settlement company reviews to find the very best one.
Get Your Structured Settlement Cash
Structured settlements are becoming more and more common these days. They are most often rewarded in personal injury cases or product liability cases. The big difference between a structured settlement and a lump sum settlement is that a structured settlement guarantees you a specific amount of money in regular payments over a specific period of time.
But sometimes you choose a structured settlement and then life gets in the way. While the regular payouts were ideal at the close of your case, an unfortunate situation has come up where a lump sum of cash is needed. Fortunately, structured settlement companies operate to help with just these situations. They are companies that will pay you a lump sum payment for your structured settlement payouts.
However, the road to getting your structured settlement cash is not always an easy one. Whether you need the money for unpaid medical bills, mounting debt, a large down purchase, or for another reason, the path to getting the cash you desire isn’t always easy.
Here is a little bit more information on how to get your structured settlement cash with the least amount of hassle possible.
A Long and Tedious Process
Right off the bat, it is important to understand that getting cash for your structured settlement will likely be a long and tedious process. There are quite a few hoops that you will be required to jump through. In some states, you will even have to be approved by a state court before receiving the cash for your structured settlement. Though this can make the process a little bit slower, the step was put in place to best protect your personal financial interests.
If you live in a state where approval is required, you need to give the court a valid reason why you need to receive the money immediately instead of as per the terms of your structured settlement agreement. The reason that some states do this is to ensure that people aren’t selling their structured settlements to receive cash for frivolous spending.
They want to make sure the money is being used for something important and necessary. After all, a structured settlement is originally designed to help a person get their life back under control after an injury or an accident.
Keep At It
The key to receiving your structured settlement cash is keeping at it. Don’t get discouraged even if the process is long and tedious. It is important to keep your head up and your eyes on the target whether or not your home state requires court approval.
Get Your Structured Settlement Cash
Unfortunately, the process of getting your structured settlement cash by selling your settlement to a third party company can be long and quite tedious. But if you keep at it and have a valid reason for doing so, chances are that you will end up with the money you need. Selling a structured settlement isn’t ideal but it can help out a lot depending on the specifics of your individual circumstances.
Money Received through the sale of tax free structured settlement payments
Did you know that the money received through the sake of your tax free structured settlement payments should also be tax free? Contact our payment services toll free to find out the tax status on your structured settlement or annuity.
Structured settlement and annuity recipients are protected by Section 104(a) (2) of the Internal Revenue Code as follows:
“Damages (money) received from personal injury settlements and sickness should not be considered as income and therefore should not be subject to tax.
Under a structured settlement, all future payments are completely free form:
- Federal & state income taxes.
- Taxes on interest, dividends and capital gains.
- The Alternative Minimum Tax (AMT).
Additionally, Section 5891 of the Internal Revenue Code was passed in 2002 and protects annuitants in the sale of their structured settlement payments.
“Section 5891 requires that the sale of structured settlement payments be approved by a judge in accordance to the state legislation and statute. This model act was created to make sure that every structured settlement transfers is in the best interest of the annuitant and dependents of the annuitant.”
To qualify for special tax treatment, a structured settlement must meet the following requirements:
- A structured settlement must be established by:
A suit or agreement for preiodic payment of damages excludable from gross income under internal revenue code section 104(a)(2) (26 U.S.C. 104(a)(2)); or
- The periodic payments must be of the character described in sub paragraphs (A) and (B) of Internal Revenue Code Section 130(c)(2) (26 U.S.C. 130 (c)(2))) and must be payable by a person who:
- By a person who has assumed the liability for such periodic payments under a qulaified assignement in accordance with Internal Revenue Code Section 130 (26 U.S.C. 130).
Your structured settlement is important to consider during tax season. Please call us here at Cash In Your Annuity for more information on the tax free status of your structured settlement or annuity payments.
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Structured Settlements and Personal Protection
When a person receives a structured settlement, chances are it is due to something rather unpleasant like an injury whose cause was not the fault of the individual. It is how the whole concept of the structured settlement came into existence. It is not the by-product of an investment strategy or some other long-term strategy designed with retirement in mind.
Because of this notion, when a person is in a situation where they need to receive cash for structured settlement, there are a few stipulations that must be met before such a transaction is approved. Such stipulations may feel like unnecessary hoops to jump through, but they are in existence to protect the best interests of the person seeking to pull the trigger on the transaction.
The Structured Settlement Protection Act
If you are in the market to receive cash for structured settlements, chances are you are going to have to obtain approval from a state court in order to do so. Every state has what is known as a Structured Settlement Protection Act on their books, with the following exceptions:
- New Hampshire
- North Dakota
This law authorizes the courts to scrutinize every cash for structured settlements claim in order to ensure that the monies that are being requested as part of the exchange is not going to be used for what could be deemed as frivolous purchases. For example, if a person looking to receive cash for structured settlements so that he or she may have money to cover the cost of spiraling medical costs that may have stemmed from the incident related to the structured settlement, the state court will more than likely offer its stamp of approval. However, if a person were to attempt to receive cash for structured settlements in order to take that dream vacation to Tahiti, it is likely that the state court may frown upon the transaction.
Such a law is set in place primarily to protect the best interests of the person receiving the structured settlement. After all, the receipt of a structured settlement may come with the temptation to not use the money in a way that is wise or logical. The Structured Settlement Protection Act more or less removes this temptation from the equation, thus essentially forcing people to use the monies for their intended purposes.
Time is of the Essence
As you may guess, the court’s involvement in the proceedings means that the overall cash for structured settlement process is not a quick one. People that do qualify to sell their structured settlement to a secondary buyer will not see their money come to them for at least thirty days after the court approves the transaction. In some cases, the receipt of this cash could take several months before it reaches your bank account. As such, if you are in a financial predicament, you should keep this time lag in mind as you begin to take the steps to receive cash. As is the case with anything financially related, your due diligence is essential to the overall process.
What to Look for in a Structured Settlement Company
One of the better assets of receiving a structured settlement is that it can be used as a financial resource in the event of a monetary predicament. While the original intended construct of a structured settlement is designed to help you receive a fixed amount of money over a designated period of time, sometimes that design and its good intentions simply won’t cut it. And selling your structured settlement off could provide you with the cash that you need in order to find relief from the following situations:
- Unpaid medical bills stemming from an unexpected emergency
- Mounting credit card or student loan debt
- Sudden funeral costs
If you find yourself in a situation where you need to turn the structured settlement of tomorrow into the cash of today, you know that there are several companies that buy structured settlements waiting for your business. But how do you go about selecting the one that is right for you?
One of the key elements that you should look for when you start looking for a company to sell your structured settlement to is experience. Because of the proliferation of the industry in recent years, there are several companies that buy structured settlements that have cropped up as a result. Your best bet here is to look for a company that has been around the block a few times. If you still want to check out a newer company, make sure that it is staffed with people that have plenty of industry experience.
Another big step to take is to take a look at a company’s online reputation. There is certainly no shortage of product review sites on in Cyberspace, and they come loaded with the pros and cons of virtually every business imaginable, including structured settlement companies. This information can come in very handy as you formulate an opinion as to what company may be right for you, as you will get a chance to see the experiences people have had as opposed to the experiences that the company wants you to see. That said don’t discount the company’s own hype: If there are testimonies printed on the virtual page, you can track down those that give the company praise and ask them details on their own experience.
Finally, don’t be afraid to check a company’s credentials. Sites like the Better Business Bureau can provide you with information to show just how solid in standing a company that could be interested in working with truly is – information that could very well make or break your interest in a company.
It’s Your Money, Act Like It
Ultimately, these steps are all bound by the need to do due diligence in the search for the right structured settlement company. This makes a lot of sense, of course. After all, your money, finances, and even livelihood are in play here; as such, making a poorly informed decision can have negative ramifications for you in the short term and the long term. However, a well informed decision can give you the kind of peace of mind that is crucial to any financially-based procedure.
Structured Settlements and Self-Preparation
Be prepared. It’s a phrase that is associated with the Boy Scouts, but it’s also a phrase that any financially savvy individual should have on their lips at any given time. After all, you never know when life may throw you a curve ball. What you do know, that life’s breaking stuff can be rather wicked, especially toward your wallet. Some of the more unpleasant stuff that life can saddle you with include:
- Unexpected medical bills stemming from emergencies
- Mounting debt incurred by excessive student loans or credit cards
- Sudden funeral costs
If life has also handed you a structured settlement, you may have an excellent monetary weapon in your hands that you can use to slay these unplanned beasts that threaten to wreck havoc on your bank account. After all, you can contact a structured settlement company to get the ball rolling on turning the fixed payment amounts of tomorrow into a lump sum of cash today. However, before you make that initial call to the structured settlement company, you should make sure you are adhering to the spirit of that famous Boy Scouts slogan.
Knowledge is Power
The most important thing that you can do in cash for structured settlement situations is to get as familiar as you possibly can with all of the details of your settlement. No bit of data associated with your settlement is too small or obscure, and you should treat every nugget of information as vital. If you find things about your settlement that you do not quite understand, seek counsel from a financial expert or financial advisor. This way, you can walk into your meetings with a structured settlement company and not be held completely in the dark.
You should also do some research to see what long-term financial ramifications that the short-term relief of a selling your structured settlement may yield. For one thing, you will not be getting the full amount of your structured settlement if you sell it to a structured settlement company, just a high percentage. Furthermore, you should be cognizant of the fact that this money will not be available in structured payment form later on down the road. That sounds like a no-brainer, but it is important to think about how your future finances – and future quality of life – may be affected by your short-term decisions.
Ready to do Research
You should also be prepared to hunker down in front of a computer and do plenty of comparison shopping to find the structured settlement company that is right for you. The structured settlement purchasing industry has grown by leaps and bounds in the last few years, and such proliferation has led to an abundant market filed with numerous choices. It can be intimidating at first, but if you take enough time to do a proper amount due diligence, you will come across a company that will ideally fit your needs. It may take a lot of leg work; however, it is worth it in the end. Besides, nobody ever said that preparation was easy.
Looking for a Structured Settlement Buyer? Things You Should Know
If you have received a structured settlement, you may be considering selling it off to a structured settlement buyer. That is perfectly understandable; based on the proliferation of secondary buyers that have sprung upon the market over the past decade or so, you are most certainly not alone in this sentiment. After all, working with a structured settlement buyer to receive cash for your settlement could provide you with money to do the following:
- Pay off mounting medical bills that resulted from an emergency
- Pay off overwhelming credit card debt
- Pay off student loans
- Provide a down payment for a home
Obviously, there are a few excellent reasons as to why you would be on the lookout for a structured settlement buyer. However, before you do, there are a few things that you should be aware of concerning the process.
Not All There
The biggest thing you should be aware of if you work with a structured settlement buyer is that you will not retain the full amount of your structured settlement. Typically, you will only receive anywhere between 60% and 85% of your original structured settlement amount. This may come as a surprise to those who are expecting to receive the full amount of their structured settlement in one lump sum.
A Long, Complex Process
Another thing that you should be aware of is that the process of getting your structured settlement once a buyer has been determined is not exactly a cut and dried process. All but six states have what is known as a Structured Settlement Protection Act on record. This bit of legislation dictates that no transaction between a person and a structured settlement buyer can be officially completed without the approval of a state court.
The reason for this rule is simple: It is put in play so that any money that is used in cash for structured settlement situations is done so in a manner that is not deemed by the courts to be frivolous in nature. In other words, it prevents people from taking the money and doing things like going on a dream vacation. This is due in part to the fact that the concept of a structured settlement is tied to legal cases, and should not be used in a manner that could compromise the integrity of the settlement.
Also, if your transaction with a structured settlement buyer is approved, you should be prepared to wait a while for your money to reach you. The money from cash for structured settlement situations will not reach your hands until at least thirty days, if not longer. As such, you should make appropriate financial plans in order to compensate for this time lag.
It’s up to You
In essence, it is important that you do the research on the ins and outs of working with a structured settlement buyer. This process is no different than any other financial-related situation. It really is a simple rule of thumb to use: If a process involves your money, you should research it as thoroughly as you possibly can. You will be thankful that you did in the long run.
The Process of Selling Off your Annuity
The option to sell off your annuity in exchange for cash is something that can look rather enticing to a person that is wrapped up in an annuity. It is enticing because the concept of getting cash for annuity could be of great assistance for a person faced with needing to come up with a large sum of money in a relatively narrow window of time. Some of the scenarios in which a large amount of cash may be needed include:
- The down payment for a home
- Investment of a business venture
- Unpaid medical bills stemming from an unforeseen incident
- Massive debt amounts incurred from student loans or credit cards
If you are a person that is in a bit of a financial bind, receiving cash for annuity sounds like a tremendous deal. However, before you go down that road, it is in your best interest to take a good look as to how the process of getting cash for annuity works.
It Starts with You
Before you even think about getting cash for annuity, it is crucial that you pore over your annuity contract to get familiar with all of its details. If you do not have an intimate knowledge of all of fine print that is involved in the annuity contract, you may end up not getting as much bang for your annuity buck as you may otherwise receive.
Also, as you look over your contract, if there is anything involved in the paperwork that makes you scratch your head even ever so slightly, don’t play a guessing game. Consult with a financial expert or advisor to ensure that you are not misinterpreting something. Finding out too late that you misunderstood part of your contract could have devastating consequences.
When you are ready to start seeking a secondary buyer willing to give you cash for annuity, you should take the time to understand the process in its entirety. Primarily, you need to be cognizant of the fact that if you are receiving cash for annuity, you are giving up your right to receive future structured payments. The only exception to this would be if you were to forego the notion of selling your annuity in full and selling only part of your annuity.
Finally, you should be aware that you will not be receiving the full amount of your annuity by going the cash for annuity route. Typically, you will be receiving anywhere between 60% and 85% of your annuity amount.
Take the Time
Because of the various complexities that exist in cash for annuity situations, it is imperative that you take a significant amount of time and research the entire process from beginning to end. Take a look at the secondary buyers that are vying for your business and see how they can help you retain the most cash for your annuity. Analyze your own situation to see just how much money from your annuity is needed in order to cover your expenses. Make sure you understand the ramifications of the process. Remember, it is your money; that alone should be enough motivation to ensure you go about this process in the smartest way possible.
Annuity Payments and Taxes
From an investment standpoint, setting up your retirement portfolio to include annuity payments is a pretty attractive enhancement. For one thing, its premise is simple: Contribute some funds now; receive payment from that contribution in installments later. Secondly, it provides people with enough wiggle room to sell their funds to a secondary market for a host of reasons, including:
- Paying off medical bills stemming from an unexpected medical situation
- Purchasing a home
- Getting involved in a business investment or project
Annuity payments are also structured to help people handle their retirement funds in a matter that is budget-friendly and frugal. What’s more, there are plenty of tools such as calculators that can help people pinpoint precisely what kind of annuity based investment strategy they want to deploy.
As flexible and option friendly as annuities can be, there is still one element pertaining to annuity payments that must be analyzed in order to fully realize how they operate: That is, the taxation implications behind annuity payments.
Pre-Tax vs. Post-Tax
There are in essence two ways that annuities can get taxed. The first way is on a pre-tax basis, and the second way is on a post-tax basis.
In a pre-tax basis, the person buying the annuity would be using pre-tax dollars to complete the purchase. This means that this investment money did not have any taxes like Social Security or Medicare tax taken from them prior to the investment purchase. As a result, all annuity payments that are made to an individual will have taxes taken out of it before that money reaches the individual.
On the other hand, in a post-tax basis, the person buying the annuity would be using post-tax dollars to complete the transaction. This means that this investment money had taxes such as Social Security or Medicare tax taken before the investment purchase was completed. As a result, the original principle of what was invested in a post-tax situation will return to the person on a tax-free basis. However, any money that had grown on top of the original principle due to capital gains will still need to be taxed before it comes to the individual.
Same Old Rate
Regardless of whether a person goes with a pre-tax option or a post-tax option with their annuity payments, the fact remains that they will have to pay taxes on the investment at one time or another. It should be noted that regardless of when the taxes are paid, they will be calculated at the normal income tax rate, and not at the capital gains rate. This means that people that invest in annuities would not receive the kind of capital gains tax benefit that they would enjoy in other investment avenues, such as stocks or bonds.
Still, this tax rate can be viewed as a minor quibble in comparison to the other options and flexibility that can be experienced through the purchase of an annuity. Its generally straightforward nature and its ability to help people manage their post-retirement money make it an investment strategy that is worth looking into.Call Us Today
Over the past few years, there has been a dramatic rise in the number of structured settlement buyers currently operating. Chief among the reasons for this rise is a...
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