Our Reviews Can Help You Sell Your Structured Settlement For More!
From buying a house to putting together funds for that vacation you always wanted, selling your structured settlement will give you the financial leeway to actually do it. But it is advised that you carefully consider your situation before proceeding with the sale. Most financial advisers would advise you to avoid selling your payments, if possible. This is because, in the long run, you receive a lot more money from the periodic payments of your settlement plan. The money is free of tax and keeps showing up for a long time. But if you choose to sell, you are expected to pay taxes, along with an interest fee. The interest rate is usually between 8%-18%, but it differs accordingly. So it is always best to collect all the pertinent information and consider all options and routes before deciding.
On average, it takes about 45 days for you to receive your money after you sign the contract. Please do note that payment purchase transactions are separate for different states as each state has different laws and regulations regarding such transactions.
Selling your future structured settlement payments can be tricky, not the actual selling part, but the aftermath. What most holders of structured settlements don’t realize is the payments are usually tax-free income for many years. When you cash in the structured settlement, there could be a tax bill, and most people don’t understand that when they go to sell it.
It can be brutal.
But often, circumstances present themselves which are more dire than the hit of cashing in a structured settlement. For example, the $500 a month payment from a car accident from years earlier may have really helped with the medical bills back then, but if job loss, home repair, or other unexpected bills occur, a lump sum payout for $65,000 looks better every day.
What are the negatives of cashing in your structured settlement?
- Selling your payments can carry charges of up to 10% of the remaining balance.
- Selling before the age of 59 ½ can create federal taxes and/or penalties.
How do I sell my structured settlement?
There are three basic steps you need to follow:
- Find a buyer: After presenting valid reasons to sell your future structured settlement payments, the first thing you need to do is to choose reputable structured settlement company. Look for one experienced in completing the court-ordered transfer process, with an A+ rating on the Better Business Bureau and minimal complaints.
- Start the sales process: The paperwork process starts now. After submitting the proper paperwork (your settlement agreement or benefit's letter so the transfer company can verify your payments, application, ID), review all the materials to ensure that they are complete and accurate.
- Have your sale approved by a judge: After all the required documents are in place, a local attorney files them in court, which will then schedule a hearing. You’re now in the waiting period. The court will require you to justify why you need to sell it and give assurance that the deed will not put your family’s financial future in jeopardy. Assuming that there are no problems with your transfer request, the judge will approve and sign the order approving your transaction, which is then sent over to an insurance company to wire funds.
Reasons To Sell
Everyone goes through financial problems at least once in their lives. You aren’t alone if you are feeling the pinch right now. Often, when you are desperate for money, you will make a less than thought out decision which can greatly hamper your future for some temporary relief right now. It could be a loan that you don't need from loan companies that are less than upfront with you.
During the recession, there were record number of annuities, lottery payoffs, structured settlements, and other long-term payments which were sold off. If you are still cash poor, there are options for you.
Whether you want to sell your payments out of an immediate need for cash or you want to have some cash available to fund your new business idea, structured settlements can represent a big sum of money that you can withdraw. While most people are content with a steady source of tax-free income for the rest of their lives, some people want that huge lump sum check and the gratification that comes with it. It is very tempting to sell your structured settlement and receive all your money at once. While there are logical reasons and benefits from not selling your payments, there are many valid reasons to do so too.
Either from circumstance or from opportunity, people sell their future payments. And while the reasons for selling are individualistic and unique to you, here are some common reasons why people choose to sell their structured settlements:
- A great reason for selling your payments is when you see a business opportunity. Got an innovative new start-up idea? Your ideas could be funded by the capital you gain from selling your structured settlement. Investments such as these, if executed properly, might lead to payoffs that are much bigger than what you were getting from your annuity.
- If you’re one of the people who purchased lottery tickets in groups and managed to win, a small annual payment that gets divided among several people does not seem as appealing as a lump sum of money divided equally. In situations like these, selling it makes a lot more sense than hanging on to a small yearly dividend that gets further divided among you and your friends.
- Some of the more charitable souls desire to make a large contribution to charity, so they sell their structured settlements to receive a lump sum that allows them to leave a positive mark in the world.
- One of the most common reasons is to pay off existing debts. If you’re stuck in debt and want to climb out of the pit, selling your payments becomes a whole lot more enticing.
- Everybody knows college is super expensive. But they also know that it’s one of the soundest investments you can make for your future. Returning to college is also another common reason why people choose to cash in their structured settlements.
- Life is unpredictable. You never know what kind of problems are going to come knocking at your door next. Emergencies can happen to anyone and at any time, whether they be medical or financial. In situations such as these, selling your future payments might be a better option than opting to take a loan.
- Purchasing real estate is another reason for withdrawing that lump sum. Some smart souls choose to buy rental property from the money they receive from the sale of their structured settlements. These properties could end up bringing a rental payment much larger than their previous payments.
- Some cases look at the inheritance of annuities. A person who inherited such structured settlements might want to get all their cash up front instead of receiving small amounts of yearly payments.
- Buyer’s remorse. A person who chose structured payments over a lump sum cash out from reasons that may have seemed logical back then might later realize that he made a mistake and wants the lump sum option instead. They later opt to sell it to finally receive all their money at once.
When you are ready to sell your structured settlement, our expert reviews can recommend the perfect company that can meet your current needs. Every situation is different, therefore, every solution is different. We can match you with the right company. It's what we do.