Structured Settlement Transfer
What is a structured settlement transfer? Is it legal?
As you may already know, a Structured Settlement is a financial arrangement that allows court-awarded compensation to be paid in regular installments rather than in one lump sum. These payments provide money for a fixed period or lifetime and are usually paid via an annuity.
When you sell some of your future payment rights for a cash lump sum payment, you are transferring the rights to those future payments to a third party otherwise known as a factoring company. This is known as a Structured Settlement Transfer (SST) or structured settlement factoring transaction.
A factoring company such as CBC Settlement Funding will provide the annuitant or payment recipient with cash today in exchange for a certain number of future payments. For individuals who find structured settlements too restrictive, having the flexibility of accessing their future money now is a viable option.
Sometimes people think that they aren’t allowed to transfer their payments but this is not true. It is perfectly legal to sell some or all of your future annuity payments for cash. When it comes time to sell these payments, forty-eight states and the federal government has enacted additional consumer protection statutes establishing strict conditions when an annuitant sells some or all of their future payments. They require court approval to determine that the transaction is in their best interest. While the statues vary by state, these processes were designed to protect annuitants to ensure they’re receiving a fair amount for their payments.
Although selling future payments isn’t for everybody, having the ability to do so can be comforting during times of financial crisis. If you’re interested in learning more about structured settlement transfers, give CBC Settlement Funding call today at 877-386-3377. We can explain all your options including only selling a portion of your payments.