Structured Settlement Purchaser
A structured settlement purchaser is someone who is interested in buying up a settlement for a lump sum payment amount from someone who has been granted a settlement by the court. Companies or individuals who offer to pay a lump sum amount often do so because they stand to make a profit from the sale. A judge may have to approve the sale before a structured settlement purchaser can make a purchase on annuities issued by an insurance company. If the decision has been made to sell the seller should seek legal counsel and shop around for the best offer. The owner should think about the consequences of not having a certain amount of money coming in at regular intervals before selling out.
When a person has become injured and a settlement is made in court to compensate the injured party, she is sent a payment on that settlement at regular intervals until the settlement is paid in full. A structured settlement purchaser offers to buy this from the injured party in exchange for one lump sum payment. This may sound great at the time but it will be easy for the injured party to spend the money quickly and not have anything left for the future. This could turn out bad if the person is unable to work or is partially disabled where he or she can only work at low paying jobs. This can be a great temptation for someone who does not have the discipline to overcome or put the truth into perspective. A person should ask why a lump sum payment is necessary and should give himself time before making a final decision.
The insurance company who is liable for the payments purchases annuities to help cover the amount due to the injured party. Annuities are often funded by investments made by the company who owns them. The interest earned helps to cover the amount due. Some insurance companies will not allow a structured settlement purchaser to buy them. In addition, some states have laws that prohibit the sell of annuities or only allow the sell to be valid if it is approved through the court system. Obtaining legal counsel can help a person to know if it is even possible to sell their annuities for a lump sum payment and if it is how he or she can go about doing it.
Quotes are available online through companies who offer choices from a structured settlement purchaser. The choices usually involve several different quotes from various buyers so that the seller has a choice who to sell to and how much the lump sum payment is for. Of course the main thing is to get the most money from the annuity but a person should be careful to choose a reputable company to deal with. Prayer and the Lord's guidance should be sought in a decision as serious as this one. "Howbeit when He, the Spirit of truth, is come, He will guide you into all truth: for He shall not speak of Himself; but whatsoever He shall hear, that shall He speak: and He will show you things to come" (John 16:13). Legal documents precede the actual sell so this is a good time to seek legal counsel and make sure all of the documents are in order.
The court process to selling an annuity could take as long as 30 days or more. The entire process could take as long as a couple of months from start to finish. A person wanting to sell to a structured settlement purchaser needs to think about what it will mean to him or her, not only presently, but in the future. Not having a set amount of money coming in each month or on a regular basis could mean the difference in living well and barely surviving. Most states require that the person be allowed to change his or her mind before making the final sell. This is good because for some people it can be a very serious decision, especially someone who is not capable of holding down a full time job. Having the process go through a court process actually helps to protect the rights of both parties.
Limitations of sell do exist for some types of payments that a person may want to find a structured settlement purchaser. These may include pensions, social security payments, mortgages, veteran disability, money due to a minor, and any cases that are not considered final settlements. Annuities that fall within the legal guidelines that can be purchased are normally for funds that are provided to an individual from an insurance company where injury or illness has taken place or from someone who has won a lottery. Guaranteed life contingent payments from a lawsuit will usually qualify.
Receiving a monthly amount helps to protect an injured individual by providing a steady way to live without having to worry about securing an income. Choosing to sell this security should be taken very seriously by the person who benefits from the security. A structured settlement purchaser can provide a lump sum amount in place of that security and if the lump sum is invested or put into savings that might be a good alternative. Oftentimes people who get a lump sum settlement will be tempted to make large purchases. Once the money is gone the security is gone and the person will have to find another way to secure the future. This decision should never be made on a whim or because the seller wants to use it for something that is not necessary.
Buy Out Of A Structured SettlementPeople who decide to buy out of a structured settlement are usually in need of immediate funding. A structured settlement occurs when a case concerning a significant sum of money is settled in court. Payments on the money are paid in small portions over a long period of time. Oftentimes a plaintiff or financial advisor will propose payment in such a manner as opposed to paying the entirety of the sum all at the same time. Many opt for such a method as the schedule for payment can usually be formed by those involved, or those who receive the cash. Occasionally, the ability to receive all the funds at one time is the best method, depending upon the situation, and can lead to an added level of security, "...for thou, LORD, only makest me dwell in safety" (Psalm 4:8).
Once the decision is made to buy out of a structured settlement, several options are available to choose from. More often than not there is not a whole lot of room to decide on details as many stipulations are put on the process depending on the state in which the action takes place and the company that wishes to make the purchase. There are several different ways for when the money can be repaid depending on the time decided on by the parties involved. Some decide to receive a portion on an annual basis, about once every year, while others may perhaps decide to receive a specified amount once every two or three years. Whatever time frame is settled on, those who are to receive the money will receive the payment in full until the time that the entirety of the amount has been received.
Benefits can be plentiful to those who are involved with a structured settlement. One of the main benefits is that of the ability to avoid payments on taxes. The process is exempt from any and all taxes and can, in fact reduce any surrounding obligations on taxes that might be involved. Another benefit is that such a process can actually serve to help protect a plaintiff from the chance of dissipated funds when the funds are required for unavoidable needs in the near future. Young people who receive payments from such agreements can obtain assistance with college funds and then continue to receive additional payments into adulthood. Those who have suffered from injury can also be subject to advantages as periodic payments can help to cover new methods of care such as equipment or medications. Despite all the advantages, there are a few disadvantages as well which can lead to the desire to buy out of a structured settlement.
The process of receiving a specified amount over an extended period of time might not be the best solution for everyone. For example, those who require a large amount of money, such as the amount required for a down payment on a house, the amount received might not be enough to cover the payment. In fact, the required amount might not be possible to acquire do the fact that the terms surrounding the steps to buy out of a structured settlement do not allow for borrowing a portion for future needs. Those who know that a significant portion will be required should opt to be given the entire some at one time, versus obtaining the sum little by little. By obtaining the entirety of the amount at one time, a person should be able to have the sufficient funding for whatever the need may be.
People who are in the process of receiving payments have several options available to them. For example, many times a company will inquire into purchasing the settlement. Such an offer generally leads to the opportunity for people to buy out of a structured settlement. There are many different ways in which action can take place, however some are better than others depending on each unique situation and the amounts involved. Most states have placed restrictions on the process so those who are interested about potential possibilities would be wise to find out what rules and regulations are involved in the state in which they live. Depending on a person's place of residence, the ability to buy out of an agreement may not be possible.
The steps required to buy out of a structured settlement depends on not only the state in which the process takes place, but the companies involved. Many insurance companies do not like the idea of selling to a third party, and in many cases dissuade people from the action. Those who desire to buy out should keep several facts in mind. Companies that make an offer do intend on making a profit. For this reason the amount offered is generally on the low side and might not be as much as might be expected. Therefore, a good idea is for a person or part involved to inquire into several potentially interested companies in order to find the one that offers the most.
Several sites on the Internet can be easily found and accessed that are run by companies which offer assistance for those who need to buy out of a structured settlement. Such programs are run by experts in the field who know the ins and outs of the system so as to provide the best aid possible to those in need. Those who are in the process should consider researching the different aspects involved before the decision is made to go with any one company. Before the decision is made sell to any one company, a person or the party involved should make certain that the company is reputable. The Internet can again, be an excellent tool for the job. Several businesses have pages on the web where evidence can be found that the companies are legitimate and trustworthy. The amount of research conducted into the reputation of business should not be taken for granted, as doing so can go a long way towards preventing future frustrations. Due to the many rules and laws surrounding the process, those who desire to buy out of a structured settlement should conduct the necessary research in order to make informed decisions.