Colonial pays cash for structured settlements!
Sell Annuity Payments!
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 anyone want to sell
his or her structured settlement annuity payments?
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
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