If you’ve seen a J.G. Wentworth commercial over the last few years, you probably already know the answer is a resounding “yes.” Whether you sell, however, is up to you and is dependent on a judge’s seal of approval.
How Selling a Structured Settlement Works
Selling structured settlements begins with a need or desire. For example, you may want to buy a house or pay off college loans, but your annuity payments may not meet your wants or needs.
You may be wondering, “Can my structured settlement be changed?” It is impossible. Once you and the guilty party have met your terms and the life insurance company receives the annuity, the terms are set and finalized. This is where structured settlement companies like J.G. Wentworth, come in.
However, before you approach a structured settlement entity, you should take a few steps back. Selling a structured settlement works if you take the precautions and do your own research. So start with the following steps:
Talk to your lawyer. Meet with your settlement attorney and ask, “Can I sell my structured settlement?” There may be times when you break the fine print in a document when translating your attitude. If your attorney supports you, talk to them about why you want to sell all or part of your settlement.
Determine the reason for the sale. The judge evaluates and decides on each structured settlement transfer – that’s the law. If your reason for selling is because you want a new sports car rather than having to provide for a house, the judge will most likely rule that the transfer is not in your best interest. The judges will also examine the history of the buying company, the amount you will receive and any previous requests to sell your settlement.
Find your structured clearing company. Sell your structured settlement or part of it as you would buy a car. Shopping spree. You’re likely to get the best price if you don’t go with the first company to bid you. Make sure your broker agrees to pay all fees.
Wait for the court date. Be prepared to wait over a month or two before meeting with a judge to approve your proposed structured settlement transfer. However, if you’re short on cash, many settlement companies offer small cash advances.
Notarize the contract. Make a transfer agreement and get your money so you can move on with your life and plans. If you are short on time or want a notary to fit into your schedule, mobile notary services are convenient and available nationwide.
Prepare and do your research before selling your structured settlement. You’ll increase your chances of being approved by a judge, and you’ll also receive a purchase offer that exceeds your expectations.
What Type of Payments Can You Sell?
You can sell a structured settlement, but you’ll find that some are easier to sell than others. Structured settlements are divided into two forms: lifetime and guaranteed payment. Both are awarded for either bodily injury, wrongful death, or worker’s compensation.
Lifetime conditional structured settlements end at the time of your death, so your beneficiary cannot sell the settlement based on the original terms of the contract. However, guaranteed payment structured settlements are passed on to your beneficiaries as the settlement occurs within a set time period.
You then have nine payment methods available to sell at a flat rate:
Lifetime Income: Designed to balance your current expenses with your future expenses. They are paid in excess of the estimated lifespan and are passed on to your beneficiary if you pass before the final payment.
Fixed Time: Paid in equal installments over a selected number of years.
Step Annuity: Adjust monetary inflation over time so your payment increases in line with your spending.
Index-linked: Tracks the growth of the S&P 500 stock market, but can only increase by 5 percent each year.
Eligibility for Deferred Defined Benefit: Postpones the start date for benefits.
Warranty period: Delivery is carried out in unequal payments within the selected time period.
Joint and Survivor: Provides a single settlement agreement for multiple, often related, individuals.
Treasury Funded: Modifies the estimated amount to reflect inflation and the current cost of living.
Variable income payout: depends on fluctuations in the stock market.
How you bill is important, but why you bill is more important when it comes to a lump sum. The sale of employee compensation, for example, is often complicated by strict state and federal laws, as opposed to structured personal injury compensation transfers.
For this reason, it is also important to meet with your lawyer and discuss your case if you want to successfully sell your structured settlement.
Who can sell their payments?
Judges and courts are responsible for ensuring that your interests are taken into account in the sale of your claims. For these reasons, they may opt out of a structured settlement. By court order, individuals may be denied the right to sell their payments based on their mental health and age.
For example, minors cannot sell their structured settlements. The courts are largely protective of juvenile settlement and will work to protect it and ensure it is used and accessible to the child when they turn 18.
However, parents can file a lawsuit to sell the payment rights to a structured settlement company. However, the reasons should not be convincing and show that the sale benefits only the child.
The same principle applies to elders or adults who have been assigned guardians because of their intellectual ability. If you want to sell your payment rights, the needs or desires of a senior or adult must be satisfied. The courts are often critical of such cases in order to protect the owner of the settlement, so prepare your case in advance.
Who can notarize your Structured Settlement Agreement?
Selling or buying your structured settlement is not complete without a notary.
Superior Notary Services has over 34,000 employees in every major US city. Find out more about our mobile notary services and how we can help you.