Coming into a lot of money can be the answer that you are looking for. Whether you have won a settlement, gotten an inheritance or won the lottery you have finally made it! However, you have some touch decisions to make now. People around you may change and your lifestyle will most definitely be going through some changes. One of the main things that you are going to have to decide is whether to receive your money in payments or all at once. Here are a few common questions that are asked regarding that decision.
Should I sell my annuity payments lump sum?
If you are already getting an annuity settlement then you’ll need to decide fast whether or not selling your annuity payments or structured settlement agreement in order to receive all your money at once is going to be worth it. So, “Should I sell my annuity payments lump sum?” is a very valid question because it opens up even more questions that will help you to decide on this one thing.
- Are there fees if I sell my annuity payments lump sum?
There may be fees associated with the sale of your payments in order to receive the money all together. This is because it’s usually done through a third party company and they will obviously need to make a little something off of the deal to. However, you will still need to pay taxes and fees off the top of annuity payments as well so it usually works out to be about the same.
- What is the process of selling?
You have to make the first step to contact a company that buys annuity and let them know how much you are getting and why you want the lump sum. From that point, they will review your application and then get back to you with an amount that they are willing to give you for the settlement payments. You will then choose to either accept or deny the amount offered. If you decide to deny, you can always negotiate a different amount and then wait for a response to see if they accept or deny. This could go back and forth for as long as you wish but once an offer is accepted, then it is passed on the the judge in the case and he will approve it. After this, it is only a matter of time before you receive a check in the mail.
- Once I sell my annuity payments lump sum, how long does it take to get my money?
The whole process takes less than a couple of weeks and can be done even before you have won your case or received confirmation of your money. However, it can take longer if you prolong the negotiation process. Even if it takes a few months, though, it is still less time than you would be waiting to start receiving payments. That can take up to a few years and then of course, you have to wait to receive each payment month by month or year by year, depending on the agreement.
- Can the judge deny the process even if the company and I agree?
You will need to explain to a judge why you feel you need the lump sum more than the payments. While the judge does have the ability and power to deny the request, he or she usually doesn’t. You may be advised to go in another direction but ultimately the choice will be up to you.
- Will I need a lawyer?
If you are going through a settlement case or estate findings, then you probably already have a lawyer and you can use that same one to advise you on these situations. However, if you have the won the money or something like that, then you may want to retain a financial adviser but a lawyer is not necessary. However, having a financial adviser by your side in any of these situations is a good idea because they will be able to help you make wise financial decisions that you may not be familiar with if you haven’t had this much money before.
These are some life changing decisions you are about to make so don’t feel like you have to do it alone.