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If you own a structured settlement annuity, you might receive a lot of benefits. Structured settlement payments are advantageous in providing financial security on a long term basis for you and your family and the payments as well as interest earned are free from taxes. Also there is no legal hurdle in using this money either for your emergency situations or for high yielding investments.

Your structured settlement payments can be sold without attracting any federal taxes and this has been approved as per federal law HR 2884. Two-thirds of states in the United States also permit the sale of structured settlement payments in addition to federal laws. However, in order to get the tax free benefit it is necessary that this transaction is approved by court.

Selling Your Structured Settlement

It is not difficult to get approval of the court for selling part or full quantum of your structured settlement payments provided you are able to prove your genuine requirement for money. The presiding judge will go through your case and give his judgment based on whether this sale will be in you and your family’s interest or not.

As long as you are an adult of sound mind, and you can proved that you and your dependents will benefit from the transaction, the judge has very little reason to deny your case. Your personal appearance at the trial will help in getting a positive verdict. Court approval is not mandatory for selling your structured settlement payments; however the amount and interest will be taxed.

In most of these cases, the purchasing company you are associated with will be interested in buying your structured settlement payments. However, they may have to do additional legal work in order to ensure that the sale is completed. They refrain from charging any fees for this effort they have taken; however, you are liable to pay tax on the money received without court approval.

First, you must get quotes. Getting quotations from a number of companies is advantageous to you because it will give you a chance to select the best among them.
In case you are interested in the quotation given by a purchasing company you must send the purchasing company copies of the structured settlement policy. In return, the purchasing company will be sending a disclosure document that should be signed by you. This document contains the clauses and conditions of the transaction. This should be signed and returned after your checking.

The court hearing will be the next step in this process. Under normal circumstances this takes up to 90 days and this depends on your state of residence and your insurance company. In majority of the cases the sellers get their money within 10 days after court approval.

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