IRS Tax Support

In recent years, a complete settlement funding industry has been created. Companies will offer to pay for the rights to receive future annuity payments under structured agreements. These companies offer customers the benefit of direct access to cash. Discounting is not free however and the costs can be quite high. The cash price they are willing to pay is much less than the money a person would receive from the future stream of fixed payments.

You may have seen ads encouraging you to “sell a structured settlement payment”, and be wondering if you should sell and cash out. This is a serious financial decision especially if you really need the money. You should carefully evaluate your options to determine if the sale of even a portion of your guaranteed settlement payments is truly in your best interest.

To gain immediate access to their money, a person can sell their right to receive all or part of their future structured annuity payments to a settlement buyer. The transaction is pretty straightforward but come at a cost with various fees and expenses. The factoring company acquires the right to receive future structured settlement monies in exchange for a cash payout. If you are considering selling your settlement payments it is wise to call or go online for several free quotes and information from settlement firms you can trust. Then compare the terms, costs and services provided in the offers to guarantee you are receiving top dollar.

While it may be appealing and sometimes even in the recipients best interest to sell one of more future payments, keep in mind that annuities are often sold at a discount. Because of this, it’s usually not a wise solution to sell your settlement to access funds for luxury items such as purchasing a new sports car or to finance a vacation. More responsible reasons to sell a series of payments would be to gain access financial capital in during a family emergency. Some people choose to repay a debt or to use the cash for investment purposes such as starting a business or buying a home. Others use the money to fund an entire college education.

The choice is yours, but the implications of a decision to sell should be seriously considered. In this situation you are the customer and should receive great service. As a client you are free to ask the settlement company real questions in total privacy about selling payments and your rights. Use your good judgment and experience but also feel free to ask your attorney for expert legal advice. You may also want to consult with a financial professional to discuss the impact on your taxes and your estate before you accept any cash offer for your structured settlement payments. Remember you are in control. There is no guarantee you will you have enough money to live on after the cash lump sum payment has been spent. Only sell a structured settlement payment if you are sure that you can meet all your future needs.

Structured Settlement Authority

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