Structured Settlement and Annuity Law in Delaware
Structured settlements and annuities provide a great way for families to receive regular cash payments and meet the challenges of a household budget. However, in some cases, structured and settlement or annuity payments don’t provide enough immediate money to handle major financial emergencies. In these situations, individuals or families might consider a structured settlement or annuity sale.
Structured settlement and annuity sales can help a household to:
- make a down payment on a home or investment property
- fund higher education for a family member
- pay down high-interest debt
- pay unanticipated bills, such as major medical bills
In these cases, those who want to pursue structured settlement and annuity sales should understand how their state of residence handles such transactions. In the state of Delaware, a law called the Delaware Structured Settlement Protection Act governs the sales of these assets.
Delaware Structured Settlement and Annuity Law – Financial Disclosure
As with the law in other states, Delaware structured settlement and annuity law requires structured settlement and annuity buyers to clearly inform sellers how much they will get, compared to how much they sign away. Delaware law requires that structured settlement and annuity sellers be presented with the following information:
- amounts and due dates of any sold future payments
- aggregate amounts of payments
- gross and net amounts payable to the seller under the terms of the deal
- discounted present value (a common valuation standard) of all future payments sold
In addition, Delaware structured settlement and annuity law requires the disclosure of all expenses and fees, including:
- broker’s commissions
- service charges
- processing and closing fees
- administrative fees
- legal expenses
Delaware also requires that structured settlement and annuity buyers provide the comparative value of the lump-sum cash payment as a “quotient” or a percentage. The quotient represents the net payment amount, divided by the discounted present value of future payments.
Delaware Structured Settlement and Annuity Law: Court Review
Delaware law establishes that many structured settlement and annuity sales must be reviewed by a local court. The law requires mandatory paperwork to be filed by the structured settlement or annuity buyer.
Delaware Structured Settlement and Annuity Law: Seek Independent Professional Advice
Another component of Delaware structured settlement and annuity law is found in the laws of many other states. Structured settlement and annuity sellers must be advised to seek independent professional advice on a proposed sale of assets. An outside opinion helps the consumer be sure that a buyer’s structured settlement or annuity sale offer is fair.
Sell Your Structured Settlement or Annuity with CBC
Structured settlement or annuity holders who are informed about state law and shop around for a structured settlement or annuity sale offer often find the best final deal. At CBC, we have an impressive track record and valuable experience helping clients to comply with state law in Delaware and across the country. We will keep you informed every step of the way, and help you handle this complex financial process, so that you get your money when you need it.