Sell Structured Settlements
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Cash for Structured Settlement Payments

Colonial pays cash for structured settlements!

Sell Annuity Payments!

What are structured settlements?
Who are the potential sellers?
Is it legal to sell my structured settlement?
Can I sell just a portion of the settlement?
How long will it take to get my money?
How much will I receive?
Will I owe taxes on this money?
Does my credit rating have a bearing on a sale?
What states have legislation requiring court orders?
Why would I sell my annuity?
How do I receive a quote for the purchase of my payments?
Why should I consider using your company?

What are structured settlements?

Many times when individuals are in involved in accidents or wrongful death settlements with insurance companies they elect to receive a series of payments over a longer period of time instead of an immediate lump sum. These payments normally total more than the amount one would have received at settlement. In order to make this election, the Plaintiff must sign a Settlement and Release Agreement that allows the Defendant to purchase an annuity policy to provide for the payments to the Annuitant. The Annuitant does not own the annuity and does not have the right to sell the annuity. He does have the right to receive and sell the payments to a third party.

Who are the potential sellers?

There are several reasons for a person to sell their annuity payments. Medical emergencies, loss of jobs, accumulated debt, starting a business, or any financial emergency that can plague a family can cause the need to sell. Selling their annuity payment offers a source of funds that is not available from traditional sources if their credit is bad.

Is it legal to sell my structured settlement?

Yes. Although your settlement agreement may include anti-assignment or anti-acceleration language, it has been supported in numerous court cases that an annuitant does indeed have the right to assign the payments. During the last few years there have been numerous state statues passed which regulate the transfer of any payments and may require a court order. In addition, as part of H.R. 2884 enacted in July of 2002, any transfer must be in accordance to an applicable state statute or the purchaser must pay an excise tax on the total discount. This tax is onerous enough to prohibit any purchaser from making a purchase that does not qualify under a state statute. For more information on individual state statutes, please see our state-by-state settlement statute directory.

Can I sell just a portion of the settlement?

Yes. We encourage annuitants to not sell any more of their payments than is necessary. We can buy specific lump sum payments or a portion of each payment. We can even buy a portion of the monthly payments. This will allow the annuitant to retain part of his cash flow without discounting all the proceeds. If a certain amount of money is desired to satisfy an obligation, then a partial sale can be styled to meet that specific need.

How long will it take to get my money?

Due to the steps involved in the mandated court order process it could easily take a minimum of sixty days. To facilitate the transaction and help preclude additional delays all the participants need to respond in a timely manner.

How much will I receive?

The amount we can pay for the annuity is dictated by three factors:

1) the amount and timing of the payments we are to receive
2) the probability that the issuer will make the payment on time and in the full amount
3) the current economic conditions such as interest rates

All other factors being equal, we can pay more for payments that will be received sooner than those that will be received several years from now.

Will I owe taxes on this money?

We cannot offer tax advice and you should consult your tax professional. However, on June 10, 1999, the IRS issued a Private Letter Ruling 119273-97, which confirmed that an individual’s sale of structured settlement payments would not create a taxable transaction. In addition, HR 2884 confirms this ruling.

Does my credit rating have a bearing on a sale?

In most cases your credit rating has no bearing on the transaction.

What states have legislation requiring court orders? (current as of June 1, 2006)

For our state-by-state directory of statutes pertaining to structured settlements, visit our Structured Settlement Statutes area. Remember, we at Colonial have worked throughout the entire US helping individuals sell their settlements or annuities for cash. Let us put our legal team to work for you!

Why would I sell my annuity?

A person’s financial situation changes over time. When a settlement was originally made, it was satisfactory for the annuitant at that time. Over time the situation changes and financial hardships or opportunities appear that require a sum of cash now, instead of a later date.

How do I receive a quote for the purchase of my payments?

Simply fill out our quote form and we will contact you with an initial evaluation of your annuity. We will then request that you fill out a simple Application and provide copies of the annuity policy, settlement agreement, and any other pertinent documents in your possession. This will enable us to provide a competitive quote in writing within 24-48 hours.

Why should I consider using your company?

Be sure to consult with Colonial before making a decision. We pride ourselves on:

  • Fast closings
  • Excellent customer service
  • Trained professionals to assist you
  • Competitive quotes
  • Providing customized options
  • Strong financial backing
  • Over fifteen years of experience
  • Flexibility on all purchases
  • Confidentiality with all transactions
  • Credibility in the industry