Annuity payments can be lifesavers – they provide ongoing financial support and stability. However, there can be times when those payments are simply not enough to help you meet your financial obligations. It would be nice to have the entire lump sum that your annuity entitles you to, but how can you go about doing that? One option available is to sell your annuity. Below, you’ll find information to understand when deciding whether to sell annuity payments or not.
One of the factors you’re going to have to consider here is time. If you’re pressed for cash right now, then selling your annuity might not be the right decision. The process does take time – generally about 30 days, though sometimes it can be longer depending on your situation, local jurisdiction and the court’s decision about selling the payments. When deciding whether to sell annuity payments, the time factor should certainly be considered. If you cannot wait, then you should look into other options.
When deciding whether to sell annuity payments, you should also take the time to determine exactly what you want to do. Do you need a small amount of money to make ends meet? If this is the case, then you can sell only part of your annuity. If you need a larger sum of money, you can sell a larger share of your annuity, up to the entire amount due you over time. If you decide to sell your entire annuity amount, you will no longer be entitled to any payments beyond the lump sum offered by the purchaser.
In our industry we often come across heartbreaking stories of why people need to sell some of their structured settlement payments. Sometimes people have come upon especially hard times and they need extra cash to prevent foreclosure on their home or to stop harassment from creditors. This is usually on top of unfortunate circumstances that led to their structured settlement.
While we are here if they choose to sell structured settlements, we often wish we could help those clients in other ways.
To address that need we have started a series of giveaway contests where a lucky winner will win cash each month.
The first giveaway contest starts today and runs until January 31st 2013. This is your chance to win $1000 cash!
To enter the contest, please use the form below. Good luck!
**Contest has ended and the winner has been contacted. Congratulations to the winner.**
Selling your belongings doesn’t usually require legal assistance, but the situation becomes a bit different when you’re talking about selling annuities. Do you need a lawyer to sell annuity payments? The answer here is a bit ambiguous. What should you know about the process and the need for expert legal help? Below, you’ll learn a bit more about the situation.
First, understand that there are only eight states in the nation where “independent professional advice” is required for those selling annuity payments. Those states are Ohio, North Carolina, Alaska, Louisiana, Delaware, Minnesota, Maine and Maryland. The types of advice that you’ll need include tax, legal and financial, and a professional in any of those areas can help. While only those eight states require it, all other states heavily recommend it.
While only the aforementioned states require that you have advice from a professional, it’s really a good idea to speak with an attorney or at least your financial planner before you decide to sell annuity payments. A financial planner can help you ensure that you’re making the right decision for your financial future, and a lawyer can help you learn whether or not your annuity can actually be sold (there are many instances in which sale of annuity payments is prohibited, including an inherited annuity or one where sale is prohibited by a trust). Therefore, while it might not be a legal requirement for you, it’s always a good idea to have access to expert counsel from an attorney.