Options For Selling A Structured Settlement
Filed under: Structured Settlements — Structured Settlement Expert @ 6:50 pm
Often, a personal injury case may result in the arrangement of a structured settlement. With a structured settlement, rather than receiving a lump sum of money, the recipient will get periodic payments. For instance, rather than receiving a check for the money up-front, the recipient is given periodic payments through an annuity that is funded for this specific purpose.
Many recipients of structured settlements choose to continue with this arrangement. But in some cases, financial circumstances may occur that prompt the structured settlement recipient to seek a qualified company to which to sell their structured settlement. Such a sale must be approved by the court.
A structured settlement can be sold in a number of ways. First and foremost, a recipient may choose to sell some or all of the remainder of their ongoing payments – in which case the purchasing company will give their client a lump sum of money; in turn, the company will continue to receive the payments from the structured settlement annuity.
However, there are other options for a structured settlement sale. The settlement recipient may choose to only sell a partial number of future payments to the purchasing company; or they may choose to offer a percentage of their structured settlement payments to the purchasing company, where with each payment the company takes a portion and the original recipient takes the remaining portion.
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