A General Guide about selling a structured settlement:
1) First you should determine your current and future cash needs and financial condition. It is recommended that you consult a lawyer.
2) Contact your payment provider, usually an insurance company, to determine the amount, number payments remaining , and terms of your structured settlement. It is a good idea to get all contract information from your provider. You will need this information to give to your lawyer.
3) The information gathering process can include:
-Settlement Agreement/Court Judgment/Release
-Annuity policy/contract - from the insurance company
4) When the underwriting is complete, the settlement will be submitted to the court for approval. A judge will review the settlement and determine if it is in the your best interest to sell the settlement. You are under no obligation to appear in court.
Please note: these are general guidelines, all situations are unique and vary by state and company.
A structured settlement is a method of paying damages to an injured party over a period of time when a lawsuit is settled. It usually results from personal injury cases such as automobile accidents, medical malpractice, wrongful death or product liability. In those cases, the parties involved often agree to have damages paid monthly or annually over a period of years rather than with one lump-sum. The damages are usually funded in the form of an annuity contract issued by an insurance company.
The annuity itself is not assignable by the annuitant because he or she does not own it. It is typically owned by a subsidiary of the life insurance company that issued the annuity. What the annuitant has is the "right to receive the payments" under the settlement. That right is personal property which can be assigned.
Most states have enacted transfer statutes requiring either a court order and/or certain disclosures before a structured settlement recipient can sell their annuity payments.
For a free consultation, and legal assistance, call (305) 373-9999 for an appointment or call toll free 1 (800) 966-4041 for a free out-of-town telephone consultation.
Berkshire Hathaway Life Insurance of Nebraska