How Can I Sell Structured Settlement Payments?

Based on a recent article about the structured settlement industry for structured settlements, you already know that selling your future payments to the secondary market is perfectly legal. However, if you’re selling your structured structure, involving a lawyer or an expert structured settlement planner who specializes in these hard life situations is highly advised before you shop around for a potential offer. The truth of the matter is that most companies that buy structured settlements do not have good faith in the settlement process, so they may turn away offers that seem like a good deal. And, as many people realize too late, selling a structured settlement payment in its entirety can be rather penny wise and pound foolish. The following article offers some advice on how to sell your structured settlements in a manner that maximizes your profits while avoiding the potential Pitfalls.

Before you even think about selling annuity payments, think long and hard about your reasons for wanting to sell. Do you really need the money, or is it simply a windfall you’re hoping to get your hands on? Do you realistically believe that you’ll ever be able to recoup your losses from selling? Do you see selling structured settlement payments as a way to accelerate your financial freedom, or as a means of making large payouts to secure a level of safety? As with every other investment decision you make, it’s important that you take all these things into consideration when you decide to sell structured settlement payments.

If you’re only looking to make a quick buck by selling off your future structured settlement payments, then you’ve got it made. However, if you truly want to make a profit selling future structured settlement payments, then you’ll need to approach this procedure with the same diligence and dedication that you would if you were buying annuity payments. After all, no one’s going to lend you money for the payments until you actually have a legitimate need for them. This means you need to come up with a concrete plan as to how you intend to obtain the lump sum you’re requesting in exchange for paying out the lump sum to the party or parties you’re seeking to give the money to.

First, it helps to understand the tax considerations involved in selling your settlements. Because you have an inherent right to the value of the payments, some tax law experts believe that sellers often understate the true worth of their transactions. This is because the Internal Revenue Service has a record of every sale that occurs under the terms of a structured settlement agreement, whether or not it’s a taxable sale. In addition, since tax laws vary from state to state, sellers must obtain their states’ tax codes to ensure that they’re meeting their obligations. Finally, you must consult with your attorneys to determine which laws will govern your transaction. Some states allow you to deduct a portion of the value of the payments while others severely limit this deduction.

Next, it helps to take into consideration the fact that not all structured settlements are eligible for selling. Most importantly, there are laws governing the sale of lottery winnings. Even though most states allow lottery winners to sell their payments to DRB capital, the rules and regulations can differ from one state to the next. Also, structured settlements that involve claims of disability for long periods of time may also be difficult to sell since the process requires the approval of the Social Security Administration. Most major and minor structured settlement companies will be able to help you obtain the permits and documents you need, but you should still use the assistance of your attorney to make certain these processes will be followed.

Drb capital is an investor who looks at the present value of a structured settlement as opposed to its potential return when it comes to making an investment. Buying structured settlements from investors can often yield better results for you than selling them directly to individual buyers. By providing you with the guidance you need to obtain the best value, they can ensure that you receive the highest lump sum payout possible.