How to Get Money for a Structured Settlement

Often, owners of structured settlements are faced with a liquidity crisis that necessitates the sale of a part of the structured settlement. The reasons for selling a structured settlement can include an emergency medical expense and business opportunities. Structured settlements are sold to buyers directly by the seller or through a broker.

Buyers of structured settlements usually have a number of alternatives to offer to sellers so that they can choose the best possible option for selling either a part of or their entire settlement. It is possible to sell a few years’ worth of structured settlements and at the same time enjoy the benefits of regular payments through the remaining structured settlements.

It is in the interest of the seller to take the advice of a financial advisor and a lawyer who can guide him regarding the various legal requirements and tax requirements that often vary from state to state. Apart from state laws there are federal regulations too that govern the sale of structured settlements. Certain insurance companies do not pay the annuities to anyone except the original beneficiary. The buyers are bound by law to give a break-up of the value of settlement sold, the amount paid, and the difference therein. A court sanctions the sale of a structured settlement only if it is convinced that the sale is in the best interests of the seller and his dependents. A court-approved sale of structured settlements is tax-free for both the buyer and the seller.

The costs involved with obtaining a structured settlement vary with the buyers. If a broker is involved in the sale, he is paid a commission by the buyer, which in reality is funded by the seller. However, availing the services of a broker can also be beneficial as it exposes prospective sellers to the maximum number of buyers. Brokers can impart their knowledge to the lawyer or financial advisor of a seller; this ensures that the sale process happens smoothly. Sellers should check out multiple companies so that they can have a positive experience with an honest buyer and get as much cash as possible from the sale of their settlement. In the sale of a structured settlement, there are no out-of-pocket expenses for a seller; the buyers deduct their portion and the cost of the legal expenses before paying the lump sum.

Frank Dotson

Post Author: mark

3 thoughts on “How to Get Money for a Structured Settlement


    (May 26, 2010 - 2:19 pm)

    Where can I trade in my structured settlement for money now?
    I really dont want to wait to get paid for what has happenend to me. I would like to get money now instead of waiting like 10 years to start getting paid month by month = (… This is horrible! By the time I can start getting money it wont be worth crap… I will have to wait 20 years until my settlement is completley done with. Does anyone please know of any way I can get my money now or even some of it without loosing lots? Even a bank loan would be great! Thanks in advance!


    (May 26, 2010 - 7:21 pm)

    I keep seeing ads on tv for this place that does exactly what you want.
    References :

    Jay S

    (May 26, 2010 - 7:23 pm)

    Well, I would definitely suggest a bank loan over all of the places that sell your structured settlement for cash. You will be taking a huge loss if you sell it. HUGE HUGE loss over time. Realize, that is steady income that you’ll have coming in, and may need it in the future. What would happen if lets say 12 years from now you lost your job? Would that structured settlement get you by? You probably would have already used up all that money if you cashed it in. I would really think hard about it before you completely give it up.

    JGWentworth wanted to give me $40,000 if I cashed in my structured settlement. In 10 years on a monthly basis, I will have gotten over $100,000. That is a huge loss!
    References :
    my personal experience

Leave a Reply