Getting Financial Advice
Although it may cost you a little bit of money, sound advice from your lawyer or financial analyst may save you thousands of dollars during the selling process. Your advisors can warn you about an unfortunate valuation of your structured settlement or save you money in taxes.
As part of the structured settlement selling process, you will have to be represented by an attorney before a judge or court approves the sale.
Often, your factoring company will provide you an attorney as part of the process, but a high-quality company won’t discourage you from having your lawyer.
For additional information on how to sell your annuity payments, payout options, or how to calculate payment amounts, our frequently asked questions page can be a useful resource during your financial journey.
Who Will Buy My Annuity?
Finding a buyer can be as simple as an internet search or asking your accountant for a recommendation. Although the process may be new to you, selling and buying annuities has been in existence since the 1970s. Many companies specialize in purchasing annuities and may be interested in purchasing yours. Regardless of how you find a buyer, all reputable factoring companies should:
· Staff helpful customer service representatives
· Avoid high-pressure sales tactics
· Offer a low discount rate
· Encourage the seller to talk with other buyers
· Encourage the seller to speak with their attorney or accountant
· Have positive reviews on review sites
· Employ experienced attorneys to facilitate the sale process
· Offer cash advances
· Let you read the paperwork before signing
How to Sell Structured Settlement Payments
The method of selling your structured settlement payments is relatively straightforward. Structured settlement companies complete more than 1,000 transactions a month.
· Make the Decision to Sell – If you need immediate access to cash and a buyout won’t hurt your financial future, it’s okay to decide to sell. Talk with your lawyer or accountant before making this decision to ensure it’s in your best interest.
· Contact Us – Our mission is to help answer your questions about annuities, including where to start the process. Our representatives are always ready to talk you through the annuity selling process and help you find a factoring company that works for you.
· Get a Free Quote – If you decide to work with our trusted partners, you can get a free, competitive quote on your structured settlement or annuity. We always recommend calling around to compare quotes, so you’re sure you get the best price.
· Set a Court Date – After all, paperwork is submitted, you’ll be able to schedule a court date to address your sale. You’ll need to present the reasons for selling your payments to a judge before receiving your buyout.
· Get a Cash Advance – While you wait for your court date, the factoring company you work with may be able to offer you cash up front, before the sale goes.
· Cash in Your Hand – Once the court accepts the transfer, you should have access to your money within one or two days, although this can depend on the factoring company’s policy and the banks.
The Legal Process
Selling the rights to future annuity payments is a legal process. Annuity and structured settlement buyers must comply with state and federal laws — also known as Structured Settlement Protection Acts (SSPAs) — that safeguard your rights while providing rules covering the transfer of structured settlement payment rights to a third party.
Congress promotes and regulates settlement use. They passed the Federal Periodic Payment Settlement Act in 1982, ensuring that local, state or federal taxes do not accompany settlement revenue.
In addition to complying with state and federal regulations, selling structured settlement or annuity payments requires court approval. Once all paperwork has been completed and submitted, a judge is expected to approve the transfer for sale to end. The judge is meant to ensure your reasons for selling are legitimate and in the best interest of any dependents. They can also deny a sale if they believe you are receiving bad advice or a faulty bargain from a structured settlement buying company.
For more information on the how to sell your annuity and the legal implications, visit our pages on the following topics:
· Structured Settlement Annuity Companies & Buyers
· Tax Implications of Selling Payments
· Getting Court Approval for Structured Settlement Transfers
· Structured Settlement Protection Acts (SSPAs)
Can All Annuities Be Sold?
While most annuities — including lottery winnings and structured settlements — can be sold, the law stipulates a few annuities that are not eligible for sale including:
· Veterans’ benefits
· Social Security benefits
· 401(k) or pension benefits
· Worker’s compensation payments
· Divorce settlement payments
· Child support payments
How Long Does It Take to Receive Funds?
Selling your structured settlement payments is a legal process that can take anywhere from 45 – 60 days to complete. The timelines may vary based on individual state laws surrounding the sale.
Is There Any Way to Get Money Now?
Annuity.org’s partners offer cash advances that can get access to some of your funds as quickly as three business days after your purchase has approved.
If you need help deciding which factoring company to work with, are in immediate need of cash or still have questions about the annuity selling process, please call us. Our mission is to help you understand annuities and structured settlements so you can make the best financial choice for your family.
