Are you one of the thousands of people who receive monthly payments from a structured settlement? You may be wondering if it is possible to sell my structured settlement and receive a single cash payment.
This might be a good option if you want to pay for a college education, pay off high-interest debt, or cover the cost of an unexpected financial expense. Let’s take a look at what a structured settlement is, and how you can sell it for cash now.
What Is a Structured Settlement?
A structured settlement annuity is a financial vehicle that pays tax-free monthly payments. They are usually the result of a lawsuit where there was an injury or death.
When a court orders a sum to be paid to the plaintiff, it can be set up as an annuity or structured settlement. The sum of money is held by an insurer who distributes the money each month. Many people prefer to have as much of the settlement as possible at once. They consider selling it to a group experienced in investing in structured settlements.
How Do I Sell My Structured Settlement?
Selling your structured settlement annuity is possible. This can be a complex decision, so working with a team of experienced professionals can help. If you’re unsure of the terms of your structured settlement annuity, find a specialist who can check it out on your behalf.
The first step is to find a funding company that will help you with the process. The funding company will charge you a fee to review your options and submit your application to the court. A court will review your application and determine if you are eligible to sell your structured settlement.
If you don’t need all the money in your settlement, you can choose to sell a portion of it for an immediate financial need. The rest will stay in the annuity and be paid to you in monthly installments.
The court review will take a few weeks, but once approved, you will receive your funds within a few days. You will not receive the full amount of the settlement. You will have to pay your funding company their fees, and in rare cases, you may be required to pay taxes.
If you consulted an attorney or an accountant during this process, you mustn’t have to pay their fees out of the sale, as well.
Explore Your Options
There are a lot of things to consider when selling your structured settlement. You will not receive the full amount of the settlement if you sell it. But you will have access to cash right away to pay off debt or deal with an urgent financial situation.
And always consult an attorney or accountant for advice on your financial options. For more advice and tips on investing and other money matters, explore our site. We have a lot of articles to help you manage your money wisely and achieve financial independence.