Tips on Selling Structured Settlement Payments
It can be nice knowing that you have money coming each month from a structured settlement, but when you’re faced with large bills (medical or other), you need the money now, and not divided. One way to solve this problem is to sell your structured settlement. While you won’t get the entire amount that you’d get if you waited, sometimes the convenience of having money now is worth missing out on the extra money. Below are some tips for selling structured settlements that should help you as you begin the process of selling your own.
Search Around
The worst mistake you can make is jumping on the first offer made to you. You might feel pretty great selling your structured settlement worth $100,000 for $50,000 up front, but when you find out that another company would have offered $75,000 – you’re going to feel pretty terrible. Shop around and find out what other companies are offering before going with one. Speak with your financial advisor to determine which companies to interview regarding the sale of your structured settlement.
Decide Whether to Sell Partial or Whole
Some companies will purchase a part of your structured settlement, and you will still have the remainder to receive over the allotted period of time. Consider your financial needs and determine whether it would be best to sell the whole settlement or just a part of it. The benefits of selling only part is that there is still money to fall back on, whereas if you sell the whole thing, once that up-front money is gone, it’s gone.
Is an Attorney Needed?
Before selling your structured settlement to any company, seek the advice of an attorney. It’s important to make sure all the correct paperwork is done and the necessary steps are being followed by the company. An attorney can look over the paperwork and monitor the process to be sure that everything is being done correctly.
Tax Ramifications
When selling the rights to your future structured settlement payments. The lump sum that is received from the transfer receives the same tax status as your structured settlement payments did. In other words, if your structured settlement annuity payments were tax free then your lump sum payment will be tax free as well.
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DO YOUR HOMEWORK. I did a deal with Peachtree and they totally screwed me over. I didn’t get what they said they would give me and it too longer too. I did another deal with RSL Funding, they did a better job at least and paid me what they said. Everyone should do their homework.
I have a annual payout from retirement annuity from TIAA-CREF
(4) remaining annual payouts of $6060.00 each year
Needing $8000.00 cash