Based on numerous article about the private secondary market for structured settlements, you already know that transferring your structured payments is perfectly legal. However, if you’re selling your structured settlement, involving a broker or your attorney is highly recommended before you shop around on the open market for an offer. In some states, brokers and/or attorneys are not allowed to receive “structured settlement” payments for their clients. A structured settlement, in the eyes of the law, means something completely different when it comes to sales than it does when it comes to transfer. Here is why…

When you sell structured settlements, they are evaluated based on the present value of the agreement. The courts have made this important distinction over again. In everyday language, this means that something is valued today using today’s prices and is being sold for a present value. However, anyone who has ever sold anything, even automobile tires or computer parts, knows that the value of something depreciates over time. This is why you must always bear in mind that the sale of your settlement will affect your future ability to obtain regular income from regular sources, such as a regular job.

Your future payments are also determined based on what your current lifestyle is. If you currently make less money than you did when you first started paying your annuity, then you will probably be unable to pay your annuity until you achieve a more desirable lifestyle. In other words, you must prepare your lifestyle for a less-than-perfect future, or you will have a hard time transitioning into your new annuity. Many people face the risk of their annuities failing because they did not prepare for their reduced income.

One thing that most people do not realize is that selling structured settlements to factoring companies actually reduces the amount of money that they will make. The reason for this is that the factoring companies buy at a discount rate. What discount rate means is that these factoring companies will buy a percentage of your annuity at a discount. What they end up paying you is the actual value of your annuity minus the discount they paid.

The only way to sell structured settlement payments is to get them sold at full value. You must remember that the money is yours and you never gave it up voluntarily. Therefore, there is no reason for you to give it up in a lump sum. Larger lump sums can be obtained, but the best way to sell structured settlement payments is to get them sold in a multiple-year annuity.

When you sell your structured settlements to a company for a lump sum, they are called “structured settlement cash transactions.” To begin step one, send a letter to the account executive stating that you would like to exchange your payments for a lump sum. You should explain the details of your payment structure and why you want the lump sum. From there, the process should be fairly simple.