Sell your structured settlement- 5 things to know
A structured settlement is drawn out to provide for the financial stability of an individual, ensured by the periodic stream of income, over a long term. Besides the obvious tax benefits, deferred payments also provide long-term protection and security to the recipient well as his family members. However, life is uncertain, and sometimes, people have to make the hard choice of converting their structured settlements into lump sum amounts. Selling structured settlements is a step-by-step process. Here’s how you can easily sell your structured settlement swiftly and without any problems.
1) Ensuring that Your Settlement is Clean
Before you go ahead with process of selling your structured settlement please ensure that your settlement is not shady and does not leave any loopholes for legal hassles. In order to get a quick and instant order from the court of law for the approval of the transaction, it is essential to ensure that the settlement is not fraudulent in anyway. The slightest amount of doubt in a judge’s mind can lead to a delay in receiving your lump sum payment.
2) Finding A Legit Company To Execute The Transaction
After you have decided to sell the structured settlement, it is essential that you find a legit company who will execute the transaction for you at minimal costs. Besides this you also need to ensure that the company assisting you is not just a brokering company and it is actually using its own company funds for the purchase. The company you select should have excellent goodwill and should be a very well reputed establishment. Check business reviews and ratings to gather some insight about the firm you’re dealing with.
3) Select The Company And Start The Paper Work
After you have spoken to all the prospective companies, select the one that has minimum personal interests in mind, is the most professional and has an A+ rating. Once you have selected the organization of your choice the next step is begin the paper work. Certain documents will be required to be submitted to the company. These documents include ID, annuity policy and the settlement agreement. The company will review the document thoroughly to make sure that they are completely accurate.
4) Approval From The Judge
After the papers have been thoroughly verified by the company and show no legally questionable grounds, they will be handed over to a lawyer who will then submit the request of sale of the settlement in court. A hearing will be scheduled for the same. It is essential that the lawyer representing you gives a proper justification for why you need the money. Besides this, the judge also needs to be convinced that selling the structured settlement doesn’t jeopardize the financial stability of your family and you.
5) Get Your Lump Sum Amount
Once the judge has given the green signal for the transfer of funds, the court will approve the transaction. The order of the approved transaction is handed over to the insurance company. The insurance company then transfers the funds to your bank account.
It is evident that selling a settlement structure is not a very complicated process and can be completed safely, securely, and swiftly. However do ensure that there is absolutely no fraudulency with the request of transfer that your lawyer submits to the court. In most cases, one hearing is all that’s needed for the sale to be approved. However if the court has reason to believe that there is some loophole, further investigations will take place and there might be a few more hearings before the court approves the order.