As you may know, it is possible to receive a lump sum from your structured settlement so that cash can be available now, for example, to purchase medical equipment or a handicapped vehicle. But how should you go about selling your structured settlement, and how do you get the best deal available?
First, it is important to get your own lawyer to help you through the structured settlement sale process. They will be able to examine potential contracts and make sure that you get the best deal available. In addition, when looking at companies who buy structured settlements, only work with companies with an established reputation.
Make sure to compare offers from several companies before deciding to sell your structured settlement. In general, companies will end up profiting in some way from your settlement, which means that you will likely not profit. But in many situations, what is most important is getting your needs met, which means that a small loss is acceptable. You can end up making up for the loss at least partially with sound investment strategies later on. Do make sure, however, to examine each offer in detail to make sure your loss is minimal.
You should also be aware that if you live in some areas, there will be some restrictions on settlement sale. These restrictions vary from state to state. In general, you will need to get court approval for the sale, and other aspects of the sale will be regulated as well. There also needs to be some cooperation with the annuity issuer (the company that issued your original structured settlement) who may have specific policies governing the sale of settlements.
Finally, make sure to consult with an accountant about what kind of tax liability will be incurred upon the sale of your structured settlement. In many cases, even though structured settlement payments are not taxed, the sale of your settlement will be taxed as any other receipt of a lump sum of money would be.
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