Sunday, December 16, 2007
Need money in a hurry, than maybe selling your structured settlement payments isn’t the answer.
If you are looking for a quick fix, maybe selling your structured settlement payments isn't the way to go. First you need to send a copy of your annuity to the company or broker. Next you need to summit to a credit check to see there are liens, child support payments over due and the like. Copies of marriage licenses or divorces are also needed. At this point a court approval is needed. That can take up to 3 months, depending on how busy the court is in your area. It can take 3 - 6 months to finally get your money. So when you hear that you will get your money in a couple of weeks, say good by and look elsewhere for an honest broker or company. Sometimes you can get an advance but the need has to be extreme. Look for other ways to find money, your structured settlement payments such be your last resort. If you need a established company with a good reputation, I suggest R & P Capital Resources
Wednesday, December 12, 2007
Don't rush your decision to sell your structured settlement payments just because you are offered an advance.
Many times people are swayed by a large advance on their structured settlement to making a hasty decision that is not in their best interest. Take time, sleep on it. If something doesn't feel right, you are most likely right. Find the company or broker that you feel comfortable with. Remember if it sounds too good to be true it must probable is.
t takes two to three months to complete the necessary paperwork, because a court order is most likely needed and if that court schedule is crowd, it will take time.I
Selling payments of your structured settlement is not to be taking lightly. If you have other money sources to explore, I suggest using those options first. Selling your structured settlement should be a last resort.
Frank ReCouper Sr. has been in financial services (financial planning) for over 45 years. Buying structured settlement payments for 17 years and can be reached by going to R&P Capitlal Resources
Selling payments of your structured settlement is not to be taking lightly. If you have other money sources to explore, I suggest using those options first. Selling your structured settlement should be a last resort.
Frank ReCouper Sr. has been in financial services (financial planning) for over 45 years. Buying structured settlement payments for 17 years and can be reached by going to R&P Capitlal Resources
Tuesday, December 11, 2007
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Wednesday, November 08, 2006
Don't be in such a hurry to sell your structured settlement.
Remember why your structured settlement was set up in the first place. Was it to pay for medical expenses on a ongoing basis or to take care of basic monthly living expenses? If the reasons your structured settlement was set up for don't exist any longer then you might want to consider selling it. But remember be careful look at all yours options first.
If you have other money sources to explore, I suggest using those options first. Selling your structured settlement should be a last resort.
If you still feel you must sell your structured settlement look for someone you can trust who also knows what their doing and know that it will take at least a month or more before you can get your money.
The reason is that you need a court order. Before the state structured settlement protection statutes and the Victims of Terrorism Relief Act of 2001 which created §5891 of the Internal Revenue Code. The sale of structured settlement payment rights today requires a Court in your state to review and, if appropriate, make a "qualified order" approving the sale of such payments or a hefty 40% excise tax is applied. The concept of Court approval is intended to protect you from entering into a deal that is not in your best interest. The time to close is dictated by individual state laws, both where the state and the insurance company have their home office and the state where the client resides. In some states, it is possible to close in about a month. In other states, it can take as long as four months. With the rest, it is somewhere in between. Court orders take time and all transactions need one. Don't believe it if someone says they can close in a week or two.
Another thought, don't sell your whole structured settlement, figure out what you need now. If you need additional cash sometime in the future you will be able to sell more payments or lump sums at that time. You will end up with more cash, than if you sell all payments at once; and it also allows you future options.
Remember to take your time, make good choices and don't anyone rush you into anything you don't understand. Sleep on it and decide the next day. My best wishes go with you.
Remember why your structured settlement was set up in the first place. Was it to pay for medical expenses on a ongoing basis or to take care of basic monthly living expenses? If the reasons your structured settlement was set up for don't exist any longer then you might want to consider selling it. But remember be careful look at all yours options first.
If you have other money sources to explore, I suggest using those options first. Selling your structured settlement should be a last resort.
If you still feel you must sell your structured settlement look for someone you can trust who also knows what their doing and know that it will take at least a month or more before you can get your money.
The reason is that you need a court order. Before the state structured settlement protection statutes and the Victims of Terrorism Relief Act of 2001 which created §5891 of the Internal Revenue Code. The sale of structured settlement payment rights today requires a Court in your state to review and, if appropriate, make a "qualified order" approving the sale of such payments or a hefty 40% excise tax is applied. The concept of Court approval is intended to protect you from entering into a deal that is not in your best interest. The time to close is dictated by individual state laws, both where the state and the insurance company have their home office and the state where the client resides. In some states, it is possible to close in about a month. In other states, it can take as long as four months. With the rest, it is somewhere in between. Court orders take time and all transactions need one. Don't believe it if someone says they can close in a week or two.
Another thought, don't sell your whole structured settlement, figure out what you need now. If you need additional cash sometime in the future you will be able to sell more payments or lump sums at that time. You will end up with more cash, than if you sell all payments at once; and it also allows you future options.
Remember to take your time, make good choices and don't anyone rush you into anything you don't understand. Sleep on it and decide the next day. My best wishes go with you.
Thursday, July 27, 2006
So you are thinking about getting cash for your structured settlement.
So you are thinking about getting cash for your structured settlement. Then there are some questions that you need answers to before cashing your structured settlement annuity.
First, find out how long the broker has been in the structured settlement industry. Given the level of difficulty in the industry, the broker should have a solid background.
You should also consider checking to see if there are any lawsuits being filed against their company
- contact your local Department of Consumer Affairs.
Talk at length with the broker, ask him / her questions and get a feel for how knowledgeable they are. Trust your gut feeling! Steer clear of those who offer much more money or can get it faster than others. If it sounds too good to be true, then it is.
How Long will it take to get the Structured Settlement Money
If you have been told that you can get your money within a few days – do not commit! In fact, it may take a month and a half or longer depending on the following:
1. A Court Order is required. It is now required by all states for a court order to be issued. If there is no court order, a tax equal to forty percent must be paid on the total amount of payments being sold. Do not fret, this is a good thing – it makes selling your settlement a little safer.
2. The Insurance Company – This includes both the issuer and the owner of the annuity. These things do not happen overnight. It takes time when dealing with companies.
3. What kind of payments do you have (quarterly, semi, annual, or are they a lump sum)? Different funding companies have their own requirements and it’s critical for your broker to know these requirements. Do your homework on the broker you choose - you will get your money faster and with a lot less hassle.
4. Check your Insurance Companies Rating? Make sure the Insurance Company has an A+ rating! Ultimately you will get a higher profit margin when your settlement is sold to larger financial companies. If a company has a lower rating then they may have to sell off settlements at a lower profit margin resulting in a lower price to you.
5. In addition to the above you will need the necessary documentation such as copies of the following:
The annuity,
the settlement agreement and release,
photo ID,
recent check and
application.
These are some of the things to consider. For now it gives you a good idea of what’s required.
What will Cashing Out Cost Me? Most likely you are going to be some what disappointed in the amount you receive. Total up all the remaining payments and know that cashing out will offer you much less than that. They based the structured settlement on a certain amount of money put into an annuity and then that principal amount, plus interest paid out, equaled the settlement amount. Consider other options before taking this one.
What is a structured settlement?
A structured settlement is an agreement in settlement of a lawsuit involving specific payments made over a period of time. Physical injury and workers compensation claims are awarded an annuity or payments made over a period of time. Peruse our site to make the best decision possible about your structured settlement.
Why Were Structured Settlements Created?
Historically, damages paid because of an injury lawsuit came in the form of a single lump sum. This kind of payment, especially in catastrophic injury cases, often placed the injury victim (or family) in a difficult financial position: With the victim focused on adapting to a new lifestyle, there often was not the time to manage large sums of money.
That can lead to serious trouble. A person who loses funds intended to cover a lifetime of medical care runs the risk of losing medical care and independence.
That's why, in 1982, a bipartisan coalition of legislators in Congress came together to pass legislation that amended the federal tax code. Their action, The Periodic Payment Settlement Act of 1982 (Public Law 97-473), formally recognized and encouraged the use of structured settlements in physical injury cases.
Scenario: You were injured in an accident a few years ago that left you in the care of a hospital for a few months. After leaving the hospital you endured an excruciating year and half of physical therapy. You hired legal counsel to handle your case and sued the person - or insurance company responsible for the accident. Your lawyer assures you that you will be awarded a substantial compensation for your injuries. Your legal counsel and their insurance company work out a structured settlement with a payout that will last for several years.
Even though your compensation is substantial, you will only receive a portion up front to cover medical expenses. The money paid is going to be dispersed as an annuity, or payments made over a period of time. As you can imagine, the periodic payments are not sufficient compensation for your needs now.
Now that you have decided to sell your structured settlement you will need to take some things into consideration. Ask yourself “Is there going to be a tax consequence?" As of January 23, 2002 a new law that governs such sales, does not impose any tax liability for selling a structured settlement. Another consideration when selling your structured settlement is selling only a portion. Sell a portion that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell a structured settlement. Just keep in mind that the settlement was meant to be dispersed over time and selling the structured settlement may result in financial problems down the road.
So you are thinking about getting cash for your structured settlement. Then there are some questions that you need answers to before cashing your structured settlement annuity.
First, find out how long the broker has been in the structured settlement industry. Given the level of difficulty in the industry, the broker should have a solid background.
You should also consider checking to see if there are any lawsuits being filed against their company
- contact your local Department of Consumer Affairs.
Talk at length with the broker, ask him / her questions and get a feel for how knowledgeable they are. Trust your gut feeling! Steer clear of those who offer much more money or can get it faster than others. If it sounds too good to be true, then it is.
How Long will it take to get the Structured Settlement Money
If you have been told that you can get your money within a few days – do not commit! In fact, it may take a month and a half or longer depending on the following:
1. A Court Order is required. It is now required by all states for a court order to be issued. If there is no court order, a tax equal to forty percent must be paid on the total amount of payments being sold. Do not fret, this is a good thing – it makes selling your settlement a little safer.
2. The Insurance Company – This includes both the issuer and the owner of the annuity. These things do not happen overnight. It takes time when dealing with companies.
3. What kind of payments do you have (quarterly, semi, annual, or are they a lump sum)? Different funding companies have their own requirements and it’s critical for your broker to know these requirements. Do your homework on the broker you choose - you will get your money faster and with a lot less hassle.
4. Check your Insurance Companies Rating? Make sure the Insurance Company has an A+ rating! Ultimately you will get a higher profit margin when your settlement is sold to larger financial companies. If a company has a lower rating then they may have to sell off settlements at a lower profit margin resulting in a lower price to you.
5. In addition to the above you will need the necessary documentation such as copies of the following:
The annuity,
the settlement agreement and release,
photo ID,
recent check and
application.
These are some of the things to consider. For now it gives you a good idea of what’s required.
What will Cashing Out Cost Me? Most likely you are going to be some what disappointed in the amount you receive. Total up all the remaining payments and know that cashing out will offer you much less than that. They based the structured settlement on a certain amount of money put into an annuity and then that principal amount, plus interest paid out, equaled the settlement amount. Consider other options before taking this one.
What is a structured settlement?
A structured settlement is an agreement in settlement of a lawsuit involving specific payments made over a period of time. Physical injury and workers compensation claims are awarded an annuity or payments made over a period of time. Peruse our site to make the best decision possible about your structured settlement.
Why Were Structured Settlements Created?
Historically, damages paid because of an injury lawsuit came in the form of a single lump sum. This kind of payment, especially in catastrophic injury cases, often placed the injury victim (or family) in a difficult financial position: With the victim focused on adapting to a new lifestyle, there often was not the time to manage large sums of money.
That can lead to serious trouble. A person who loses funds intended to cover a lifetime of medical care runs the risk of losing medical care and independence.
That's why, in 1982, a bipartisan coalition of legislators in Congress came together to pass legislation that amended the federal tax code. Their action, The Periodic Payment Settlement Act of 1982 (Public Law 97-473), formally recognized and encouraged the use of structured settlements in physical injury cases.
Scenario: You were injured in an accident a few years ago that left you in the care of a hospital for a few months. After leaving the hospital you endured an excruciating year and half of physical therapy. You hired legal counsel to handle your case and sued the person - or insurance company responsible for the accident. Your lawyer assures you that you will be awarded a substantial compensation for your injuries. Your legal counsel and their insurance company work out a structured settlement with a payout that will last for several years.
Even though your compensation is substantial, you will only receive a portion up front to cover medical expenses. The money paid is going to be dispersed as an annuity, or payments made over a period of time. As you can imagine, the periodic payments are not sufficient compensation for your needs now.
Now that you have decided to sell your structured settlement you will need to take some things into consideration. Ask yourself “Is there going to be a tax consequence?" As of January 23, 2002 a new law that governs such sales, does not impose any tax liability for selling a structured settlement. Another consideration when selling your structured settlement is selling only a portion. Sell a portion that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell a structured settlement. Just keep in mind that the settlement was meant to be dispersed over time and selling the structured settlement may result in financial problems down the road.
Saturday, April 15, 2006
Five things not to do when Selling your Structured Settlements for Cash.
- One: Don't sell to the highest bidder. Why?
There is what is called High Balling. Some brokers or structured settlement/annuity sources will make a high offer just to get someone under contract. Then they will start making excuses and reduce the offer. Once you are under contract with a funding source, it is very difficult to back out. Even if you are able to pull out, you will have to start the whole process over again losing valuable time, at a time when you may need money desperately.
- Two: Believing the funding source when they say you will have your money in a couple of weeks.
The time to close is dictated by individual state laws, both where the state and the insurance company have their home office and the state where the client resides. In some states, it is possible to close in about a month. In other states, it can take as long as four months. With the rest, it is somewhere in between. Court orders take time and all transactions need one. Don't believe it if someone says they can close in a week or two.
- Three: Thinking you have to sell the whole settlement or annuity. Not determining how much you really need.
Why sell a $300,000 settlement when you only need $25,000? If you need additional cash sometime in the future you will be able to sell more payments or lump sums at that time. You will end up with more cash, than if you sell all payments at once; and it allows you options.
- Four: Letting emotions or being desperate control our decisions.
We have all gotten excited or felt desperate when faced with various situations. We could be excited about buying a home or starting a new career; or we could be feeling desperate because we are about to lose our home or are facing high medical expenses. Even though we are excited or desperate, we really must think through our decision. Some brokers or funding sources will try to take advantage of us and our situation. We should discuss our situation with a trusted family member, friend, attorney, pastor or whomever. We do not want to ruin tomorrows financial options by making irrational decisions today.
- Five: Check out the reputation of the structured settlement/annuity purchaser.
Call the attorney general or consumer affairs in your residence state and the state where your funding source is located to see if there are any complaints about that funding source. If there are a lot of complaints against the source you are considering, take that as a red flag and move onto the next source. Don’t agree to anything or sign any agreements until you feel you are dealing with a reputable structured settlement/annuity purchaser.
Tuesday, April 04, 2006
What you need to know before selling your structured settlement payments.
Before the state structured settlement protection statutes and the Victims of Terrorism Relief Act of 2001 which created §5891 of the Internal Revenue Code, any one wanting to sell their settlement payments were on their own. The sale of structured settlement payment rights today requires a Court in your state to review and, if appropriate, make a "qualified order" approving the sale of such payments or a hefty 40% excise tax is applied. The concept of Court approval is intended to protect you from entering into a deal that is not in your best interest.
Should I sell my payments?
The answer to that one is difficult. The question you might ask yourself: Do I need the money now? For example: to buy a house, pay for an education, a business opportunity or to keep from filing bankruptcy. Any good reason would make sense. To go on vacation or buy an Acura Legend might not be in your best interest.
If you have other money sources to explore, I suggest using those options first. Selling your structured settlement should be a last resort.
Remember to first look for other sources of money like family, banks and ect., before selling payments. If your settlement is your only source of income it is not in your best interest to sell. Make sure the people who are buying your payments have your interests in mind. SELLER BEWARE.
I hope that you have a positive experience and put the money to good use, if you decide to sell your payments.
Frank ReCouper has been in the financial services (financial planning) for over 40 years. Buying structured settlement payments for 17 years and can be reached by going to FDR Resources.
Should I sell my payments?
The answer to that one is difficult. The question you might ask yourself: Do I need the money now? For example: to buy a house, pay for an education, a business opportunity or to keep from filing bankruptcy. Any good reason would make sense. To go on vacation or buy an Acura Legend might not be in your best interest.
If you have other money sources to explore, I suggest using those options first. Selling your structured settlement should be a last resort.
Remember to first look for other sources of money like family, banks and ect., before selling payments. If your settlement is your only source of income it is not in your best interest to sell. Make sure the people who are buying your payments have your interests in mind. SELLER BEWARE.
I hope that you have a positive experience and put the money to good use, if you decide to sell your payments.
Frank ReCouper has been in the financial services (financial planning) for over 40 years. Buying structured settlement payments for 17 years and can be reached by going to FDR Resources.
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