Selling Structured Settlements – A Brief Guide

People have been known to sell structured settlements when they have a financial emergency. The seller can opt to sell the settlement in parts, as opposed to selling the complete settlement for a lump sum.

The complete settlement does not need to be sold but the seller may choose to do so if an urgent financial situation arises and money needs to be raised immediately.

A structured settlements can therefore be sold in smaller portions if the seller only needs a small amount of cash instead of the complete sum which would be available if he/she were to sell the complete structured settlement.

Structured settlements will allow for regular payments to be paid over set periods of time, so the complete sum can be cashed in by selling a portion or the complete structured settlement.

But whenever a structured settlement is sold on for the complete amount, the cash the seller gets received is usually a lot lower than the current market value and usually lower than they would have got in monthly instalments, but if the seller needs quick cash, they will have to accept a loss.

Sometimes when the structured settlement on the regular payment basis is not needed, maybe in the instance of a worker's compensation where the periodic payments were covering the medical bills but the individual is no longer ill, cashing in the remainder of the structured settlement can bring in a nice chunk of money.

In any case, a person would need to look at all the legalities before deciding on selling a structured settlement, as there may not be an option allowing it to sold before a set time. Also, when the settlement is being decided, the contract include a restriction on selling the structured settlement.

As structured settlements aid in saving tax, the seller may be liable to pay any taxes once settlement has been sold. And if the sale of the settlement is to bring in money for any type of emergency, there is a good chance that the buyer will make a cash offer which is far lower than the current market value.

Take the time to seek out a licensed broker or a legal professional as they will be able to help sell any structured settlement in the correct fashion as they have prior experience.

Do your research and consider what is best for you before selling either some or all of a structured settlement.