Structured settlement payment commercials are everywhere on the television these days. Many people who receive these payments as the result of a lawsuit or accident may wish to have the money now rather than later. For those hoping to sell structured settlement payments, they should know what that entails. Structured settlement recipients may see those television advertisements and think, “I’d like my money now, too!” But speaking from personal experience, the process is not nearly as simple as it’s made to seem. Here is a beginner’s guide for those who want to learn more about the sale of structured settlement payments.
Before we get into the minutiae of the actual transaction, it should be made clear what it means to sell structured settlement payments. If you are the recipient of a structured settlement, this was likely the resulting decision from some accident or lawsuit; in exchange for the guilty party being forgiven of all future liability related back to this incident, the recipient accepts this payment at a future date. The money from structured settlements is guaranteed; it’s also often spread out over several years or decades even.
If the recipient decides they want to “sell” and they are of age, of sound mind and body, and they haven’t contractually obliged these future payments to another, then they have the right to sell off all or a portion of these payments. When someone sells structured settlement payments they paid a flat rate now for the future money at the agreed upon rate and schedule.
The benefits to those who decide to sell structured settlement payments due to them in the future cannot be overstated. Many people are unemployed or underemployed; families are moved from bad living situation to bad living situation; the whole of the experience can be very galling for an individual who once was able to make ends meet of their own accord. Even greater than that the movement around of school-aged children can be very disruptive. When families are forced to move from one school district to the next, this is very harmful for the development of a child. Repeated movements can cause them to act out or turn inward depending on the disposition of the child.
You also should be aware of the amount of guaranteed money you’re giving up in the future for an “easier” time now; and you should be sure you’ve exercised all other options before you make such a decision.
Whatever the situation, life is precious and time is precious. If settlement recipients can make a better living situation in the present by selling off some or all future settlement payments, they should consider it.
No one knows what the future may hold, by selling structured settlement payments due in the future individuals can make living in the here-and-now far more favorable.