Saturday, October 13, 2007

Selling Future Payments From A Structured Settlement

Filed under: Structured Settlements — Structured Settlement Expert @ 5:11 pm

Structured settlements are the result of a legal proceeding involving personal injury. The recipient of a structured settlement is entitled to periodic payments through an annuity, rather than a lump sum of money. In many cases, this arrangement suits the recipient’s financial needs. But in others cases, the recipient may find that a lump sum of money – rather than the ongoing payments – will best suit their financial situation. In such a case they may look to sell all or a portion of their structured settlement.

There are several things to understand about selling structured settlements. For one, the sale of structured settlements must be approved through the court system. The recipient of structured settlement payments must show that receiving a lump sum payment is in their best interests.

Secondly, when selling structured payments you are really just selling the right to receive future payments. A company that buys structured settlements pays their client a lump sum of money for the right to continue to receive payments from the annuity through which the structured settlement is funded.

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