Sell Structured Settlement! Read All About It
How to sell structured settlement
How to Sell Structured Settlement is a question asked by a lot of people, and with 2 good reasons. Firstly, people want to get a cash lump sum in the present rather than wait for the drip drip of the longer term settlement, and secondly because there is a sea of companies that want you to sell to them. It can be a complicated process, so here are 3 facts you need to remember from the start…
1. Any structured settlement companies you Sell Structured Settlement to will always make a profit, otherwise there is no point in them buying it, none at all.
So, although you may have your own interests at heart when looking to change your settlement for quicker access to the money, the company will not have. Let’s be honest here, the company will have the buyer’s interest at heart! That may sound glib or cynical, but it’s exactly the kind of thing you need to appreciate throughout the whole procedure. They make their money in 2 main ways – the first way is to wait for the full original settlement to work out, and pocket the difference between what they gave you. Or, the second way is to simply sell the settlement on again for quick profit.
2. You *will* end up with less money in the long run than you would have got had you stuck to the settlement. The company buying will pay you less, because the difference is their profit. Plus there are usually tax benefits attached to these settlements, many of them are tax free payments. This means that if you sell them for cash you are likely to be opening yourself up to paying more tax on the money. So, when you combine the buying company’s profit and your probable increased tax liability, be prepared to find that the total money you receive is substantially less than the original settlement would have given you. I do not use the word ‘substantial’ lightly here either, it will be a huge difference.
3. You must not do it by yourself! You may think you can negotiate the path on your own, but the buying companies will have the experience whereas you do not. You can use a broker – a broker will have the experience that you lack, and will be able to negotiate the best deal. All well and good, but you are probably going to need a lawyer as well. The broker may well be a lawyer, which makes life easier. They will be able to go through the legal jargon, and will be tied to legal standards of practice, so you will be covered in the event of bad advice. If the broker is *not* a lawyer, you should tread very carefully, and I would always advise having legal advice and representation.
Sell Structured Settlement Summary
If you keep these 3 facts in mind before you begin, and throughout the process of cashing in your settlement, you will be in a much better position, and less likely to make rash decisions which could result in costly mistakes.