If you have received a structured settlement, you may be wondering whether it is possible to sell the payments. However, there are many issues to consider before you do so. The first consideration is the legal and tax implications, as well as the risk of fraud. It is recommended to seek the advice of an attorney and check the legal requirements in your state. You may also find that there are better financial options out there. Some insurance companies will even pay you cash for your payments!
The discount rate for your structured settlement will affect the value of the lump sum you will receive. The lower the discount rate, the more money you’ll receive. However, you’ll also be required to pay additional fees if you’re selling your settlement. Remember that the effective discount rate is the discount rate, plus fees and other costs. When choosing a company to sell your structured settlement payments, be sure to choose one with a fair discount rate.
Before selling your settlement payments, make sure to review the terms and conditions of the agreement. A Seller may sell only a portion of his or her payments, and may not encumber the rest. A buyer may not encumber or pledge the Settlement Payments. You should also review your legal rights and insurance policies. This will protect your interests. There are many different types of structures, and you need to carefully read the terms and conditions of each one.
The future value of your structured settlement depends on the amount you’ll receive and interest rate. This future value is always less than the actual cash value of the qualified funding asset that will finance your future payments. The future value of your settlement will grow tax-deferred with compound interest, and you’ll receive interest on previous periods’ interest. You can use a calculator or tables to estimate your future value. The spreadsheet function in Excel can even do this for you.
If you have a legal issue with your factoring company, you can consider transferring the structured settlement payment rights to another party. Rapid Settlements has used this tactic to pressure factoring companies into entering a transfer agreement with them. By threatening legal action and a threat of arbitration, Rapid Settlements may be able to convince the factoring company to enter a transfer agreement with you. If the transfer does not go through, it may invoke arbitration against you and seek injunctive relief.
Rapid Settlements has been sued by several parties, including a private company and the National Association of Settlement Purchasers. Both organizations sought a permanent injunction against Rapid Settlements to prevent it from using arbitration as a method of transferring structured settlement payments. The NASP also has argued that Rapid Settlements’ actions undermine the legislative balance by creating uncertainty about the legal title of structured settlement payments and preventing NASP members from offering services to those annuitants that previously did business with Defendant.