When you have a settlement from a legal case, it can take quite some time for all of those payments to arrive. Depending on the arrangement you have for your case, you might be getting payments monthly, or you might be getting payments yearly. Sometimes, you have a need for more money right now, and those payments just aren’t helping. Those who find themselves in this situation always have the option of selling their annuities. This can provide you with the money that you need. One of the questions that you are probably asking right now is how can I sell my annuity?
Fortunately, it does not have to be too difficult to sell an annuity today. However, you do have to take the time to make sure that you are working with a company that has a good reputation in the business. You also want to make sure that the company you choose is going to be able to provide you with the best possible deal. When you sell your annuity, you need to make sure that you are working with only the top companies who will treat you right.
Many people that have experienced damage or injury from the intentional misconduct or negligence of another individual most often is awarded a structured settlement annuity in court. Historically, courts often awarded a lump sum of cash to the victim. However, structured settlements have become the norm because of their ability to pay out a monthly, quarterly or annual payment to the claimant.
Receiving installment payments in lieu of a single lump sum of cash ensures that the claimant receives regular income for a scheduled period of time. Usually, the defendant (the one that caused the negligence or misconduct) purchases an annuity through an insurance or annuity company for a specific dollar amount. In exchange, the insurance company provides income payments on a routine schedule, following the terms of the structured settlement annuity.
Usually, through the advice of his or her attorney, the claimant will select the type of payments they choose to receive from their structured settlement annuity. They can opt to accept deferred payments, or set the installment payments to keep up with inflation, and even provide special provisions to increase funds later in life. The choices and options available through an annuity should be designed to fit the needs of the beneficiary.
The downside to accepting a structured settlement annuity is being bound by the terms accepted in court. If the payment schedule agreed to by both parties no longer fits the needs of the beneficiary, the terms cannot be changed. However, the structured settlement annuity can be sold with the value of the policy being converted into a lump sum of cash.
When creating the terms for the structured settlement payments that one would receive to help deal with the aftermath of an injury, many factors are going to come into play. Some of the things that you are going to have to determine while coming up with the settlement include the date the settlement will begin, the duration of the payments and the periods at which the payments come due. Determining the amount of the payments is important as well, and considers other things, such as the current age of the claimant, all monthly expenses, retirement plans, and more.
In some cases, the payments are going to be tax-free. Payments made to an estate might be free of income tax, for example. However, they will have an estate tax associated with them. If you have a payment plan in place and it is currently tax-free, then you are not going to want to change the plan, at least not without consulting with a specialist. In fact, making changes to the settlement agreement once it is in place is not always an easy task.