About the Author: Chris Padgett runs a structured settlement website designed to teach you how to get the most out of your structured settlement, whether you’re signing a contract or selling your payments. Ready to get cash for your structured settlement payments?
There are a lot of benefits to owning a structured settlement annuity. Structured settlement payments provide long term financial security for you and your dependents, and the payments and earned interest are tax free. However, if you need the money or simply have better investment options, you are entitled to it.
According to federal law HR 2884, you have the right to sell your structured settlement payments tax free. In addition to federal laws, more than two-thirds of states in the United States allow the sell of structured settlement payments. In both cases, however, the transaction must be approved in court in order to stay tax free.
Getting Approved By A Judge
It is fairly easy to be approved in court for the sell of all or part of your structured settlement payments, as long as you can prove that there is a need for the money. The judge will review your case to see if the transaction will benefit you and your dependents.
As long as you are an adult of sound mind, and you can proved that you and your dependents will benefit from the transaction, the judge has very little reason to deny your case. Keep in mind that appearing at the hearing may help your cause. If you are not approved in court, you can still sell your structured settlement payments.
Selling Your Structured Settlement Without Approval
In most cases, the purchasing company you are working with will still buy your payments. They will simply do some extra legal work to get the sale finalized. You are not charged for this extra effort; however, without court approval, you may be liable to pay taxes on the money you receive.
The Whole Process
First, you must get quotes. You will almost always benefit by getting multiple quotes. If you like a quote that is given, you will send in copies of the structured settlement policy to the purchasing company. The purchasing company will send you a disclosure document to sign. This document explains the conditions of the transaction. It must be singed and returned.
Next, the court order process will begin. Depending on your state of residence and your insurance company, the process can take up to 90 days. In most cases, once you are approved, you will receive your money within 10 days.
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