Selling your Structured Settlement Annuity
Owning a structured settlement annuity gives you a lot of benefits. First of all, you and your family/ dependents are made financially secure for a considerable amount of time because of having structured settlement payments and these payments including the interest earned on them are tax free. It is legal to use this money either for any impending emergencies or for an investment with high yielding returns.
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.
Selling Your Structured Settlement
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. Your personal appearance at the trial will help in getting a positive verdict. If you are not approved in court, you can still sell your structured settlement payments.
The purchasing company with whom you are having discussions might be interested in purchasing your structured settlement payments. However, they may have to do additional legal work in order to ensure that the sale is completed. They will not charge you for this extra effort they have taken for this; however, in the absence of court approval, you are liable to pay taxes on the money you receive.
First, you must get quotes. Getting quotations from a number of companies is advantageous to you because it will give you a chance to select the best among them. If you like a quote that is given, you will send in copies of the structured settlement policy to the purchasing company. In return, the purchasing company will send you a disclosure document for your signature. You will find in this document the details of the conditions of the transaction. This should be signed and returned after your checking.
The court hearing will be the next step in this process. Under normal circumstances this takes up to 90 days and this depends on your state of residence and your insurance company. Once court gives approval it might take 10 days to get your money.