If you’re looking to sell your structured settlement payments, you’re probably already aware of the many limitations on these payments that make it cumbersome and annoying for the owners to use their money freely. But if you’re like most Americans, you may not know too much about structured settlements, much less how selling a structured settlement or selling an annuity settlement can be very simple:
- A structured settlement is the way that money is paid out after a lawsuit or even when someone receives lottery winnings. Instead of getting the entire payment all at once, a settlement sets up a calendar of payments that are sent out to the “owner” of settlement over a period of time; these payments are tax-free and the regular payment amount is decided in court.
- The most frustrating and most obvious setback with structured settlements is that although the money is technically yours, you can only use what has been paid out to you and you must wait for the remaining payments before spending them. This can be a good option for anyone looking for some financial security over the long term, but it can be very annoying because the payment amounts often aren’t enough to do what you really want to do.
- One option to get out of a structured settlement agreement is to withdraw your money early — but very few people do this because there are very high penalty fees if you withdraw your money before the agreed-upon date.
- Another option — and probably the best option if you want to get cash for your structured settlement — is to sell your structured settlement entirely. Companies will offer to purchase your settlement — meaning any remaining payments that you have yet to receive — and give you a lump sum of cash in return, while they wait for the payments to trickle in.
- The process of selling a settlement will require some patience and organization; there’s a legal process required, and it’s important to remember that you’ll still have to pay some fees to the company for processing. But if you need a large amount of cash now and you really can’t wait for your next payment, selling your structured settlement payments is a safe and reliable option.