PartialIf you sell a portion of your payments, you will continue to receive income periodically, without losing any tax or tax benefits. The structured settlement will continue to provide you with those tax advantages, and will extend them to your heirs or beneficiaries in the event that you die before receiving all scheduled payments.
TotalChoosing to sell all future payments from your structured settlement for the remainder of the term of the settlement means that you will reduce to zero all your investment in this instrument, ending the possibility of receiving periodic payments in the future. But you will eventually have a single and final payment on your hands, with which you can make any investment.
Final and final payment or lump sumSelling a final and final payment on time will also give you a significant amount of money at the time, but it guarantees you a steady stream of future income in accordance with the terms of the structured settlement contract, while maintaining the same tax benefits than before.
How to sell your annuity or structured settlement?The process of selling your structured settlement payments is basically very straightforward, starting with your decision to proceed with the sale, getting an appointment in court, and finally receiving the money in your hands. Fundraising companies complete more than 1,000 such transactions per month. However, what we can offer that our competitors simply cannot: is a comprehensive, dedicated and prompt customer service team; Offer a free estimate in minutes and a cash advance when the transaction is approved.
Make the decision to sellIf you need cash for a valid reason, because it is your only alternative, and because selling the payments will not negatively impact your financial future, then make the decision and start the process.
Get a free estimateWe offer you a competitive estimate, free of charge and in a matter of minutes.
Cash advancesOnce we reach an agreement, we can provide you with an immediate cash advance so that you can start using your money without waiting.
Get a court dateAfter all documents are entered, you will first have to present to a judge the reasons why you want to proceed with the sale. If approved, you can then receive your money.
Cash in your handsOnce the court accepts the transfer, you will have access to your money.
How much money will i receiveThe amount of money you will receive from the sale of your structured settlement future payments depends on several factors. First, it is the company you choose to do business with. Many people interested in selling their payments do research and try to see who can offer you the best price. There's nothing wrong with that: Our customer service staff will offer you competitive prices that will exceed our competition's estimates.
The amount you receive will also depend on how many payments you are going to sell and when those payments should be distributed to the beneficiary. If there are more payments that you will sell, the payment you will receive will be higher. And we recommend that clients keep as much future payments as they can in their possession.
- Factors that affect the future value of your annuity payments:
- Amount of payments and how many would you like to sell
- Extension and timing of your payments
- If there is a lump sum that also wants to sell
- Economic conditions of the moment
- Commissions and extra charges
You will not get the final priceYou need to understand, at the start of the process, that this is a business transaction. Companies that purchase structured payment settlements do so with the intention of making some kind of profit at the end of the day. For you, this means that if your annuity is valued at, say, $ 250,000, you will be offered an amount below that as a one-time, final payment.
How much less?It could be as low as 50 percent. In many cases, the offer could be in an amount that is between 60 and 80 percent of the original value. The percentages are based on financial market conditions, particularly the institutional interest rates set by the United States Federal Reserve, and conditions are constantly changing. In fact, the discount amount is the price you are paying for the ability to receive the money immediately.
Structured loans and settlementsFor banks, the income that any person can receive through structured settlements is seen in a different way than other assets. For starters, a bank is not going to accept future payments as collateral or collateral for a loan, so it cannot borrow from you and use your contract as collateral for payments.
However, you have the full right to transfer your payments to a third party, to a company that is dedicated to buying future structured settlement payments. This company can give you cash right away, which is basically a loan in exchange for accepting a portion of your future payments.
The company then takes the risk and provides you with the money you need to meet your current needs. In exchange for that money, the company will then own all or some of your future payments stipulated in the agreement.
Research and know the lawsAlthough the way your annuity contract is written may restrict your sale or transfer to another entity, the sale of your rights to future payments is completely legal. Annuity and settlement buyers must comply with the provisions of federal and state law. In total 43 states have passed laws known as Structured Settlement Protection Acts (SSPAs) that safeguard your rights, while establishing the legal framework for the transfer of future payments in structured settlements to third parties.
Congress promotes and regulates the use of these agreements. They passed the Federal Periodic Payment Settlement Act in 1982, ensuring that structured settlement income cannot be subject to local, state, or federal tax payments. They also require that a state court approve the transfer and determine if the reasons you have for the sale of your structured settlement are legitimate, and that what you do is in the best interest of any dependent you may have.