The advantages one can get from having a structured settlement annuity are quite a few. First of all, you and your family/ dependents are made financially secure for a considerable amount of time because of having structured settlement payments and these payments including the interest earned on them are tax free. However, if you need the money or simply have better investment options, you are entitled to it.

The federal law HR 2884 protects individuals who want to sell their structured settlement payments to meet unplanned financial needs; this can be done without any tax implications. Two-thirds of states in the United States also permit the sale of structured settlement payments in addition to federal laws. In both cases, however, the transaction must be approved in court in order to stay tax free.

Selling Your Structured Settlement

It is not difficult to get approval of the court for selling part or full quantum of your structured settlement payments provided you are able to prove your genuine requirement for money. The presiding judge will go through your case and give his judgment based on whether this sale will be in you and your family’s interest or not.

Any adult with a sound mind can get court approval for selling his structured settlement payments as long as he can prove that he and his family will get benefitted by this transaction. Keep in mind that appearing at the hearing may help your cause. Sale of structured settlement payments is permissible without court approval but you will be taxed on the payments and also its interest.

In most cases, the purchasing company you are working with will still buy your structured settlement payments. They may also be willing to handle the legal issues to facilitate finalization of this sale. You are not charged for this extra effort; however, without court approval, you may be liable to pay taxes on the money you receive.

First of all you must get quotes from various companies. It is always beneficial for you to get multiple quotes. You must choose the company with whom you want to proceed further and after selecting this company you should send the copies of the structured settlement policy to the purchasing company. The purchasing company will send you a disclosure document to sign. In this document the conditions of transaction would have been clearly specified. You must study it carefully, sign it and return it back to the purchasing company.

The next step is to get the court order. Depending on your state of residence and your insurance company, the process can take up to 90 days. Under normal circumstances you will receive your money within 10 days after court approval.