There are a few tried and tested tips for how to sell a structured settlement. For the layman, a structured settlement is a compromise agreement done to compensate the injury and/or damage inflicted. This involves a scheduled payout of funds over a period of time.
Unfortunately, the recipient of the structured settlement does not live in a vacuum. Circumstances change and there may come to a point that the structured settlement, instead of being a fund source, would then be used as an asset and be exchanged for value. This is where the sale of a structured settlement comes into play.
When this option is considered, there must be steps undertaken in order to protect the interest of the annuity recipient in the transfer of the structured settlement’s control. These steps are as follows:
a) Submission of all documents promptly. This is the first step to be done to ensure that the sale would be consummated. This would avoid delays in the processing of the payout amount. Just make sure that receiving copies are kept of the submitted documents in order to avoid any issues in the long run. The documents must be signed on every page for the full completion of the information required in the sale.
b) Follow up on the submitted documentation. Many think that companies would process the paperwork upon submission but in reality, they would need to be followed up in order to speed up the processing. In doing follow ups, one can be apprised of the actual progress of the sale documentation.
Process of selling a structured settlement
Overall, the whole process of selling one’s structured settlement may take between 45 days to 60 days. The following are the steps to be undertaken in order to finalize the sale validly and legally:
a) Court Hearing. There is a need for a court hearing approving the said sale after submission of all the necessary documentation set under the jurisdiction for the valid transfer of these assets.
b) Field Offers. It is best to obtain competing quotes from different companies in order to have all the facts before making a decision on which company to sell the asset eventually.
c) Full Disclosure. All the disclosure as well as pertinent information required under the state law, such as timing of transactions, payment of fees and guarantees involved in the payout dollar amounts.
d) Certified Company. Do conduct a due diligence check on the company purchasing the structured settlement. The venue for this search must be done in the Better Business Bureau, especially as to the servicing of the payout as well as the company’s financial stability.
e) Consultation. Aside from conducting your very own search, it is best to consult one’s decisions with both a lawyer as well as a financial planner. These two individuals are experts than can provide both the legal as well as financial ramifications of the sale to be undertaken.
Thus, in doing the complete submission as well as following up on their progress would help complete the sale in not time. This is completed after undergoing the necessary steps in completing the sale.