Implications of liquidating
Annuity and structured settlement buyers must comply with state and federal laws — also known as Structured Settlement Protection Acts (SSPAs) — that safeguard your rights while providing rules covering the transfer of structured settlement payment rights to a third party. They passed the Federal Periodic Payment Settlement Act in 1982, ensuring that settlement revenue is not accompanied by local, state or federal taxes.In addition to complying with state and federal regulations, selling structured settlement or annuity payments requires court approval.Visit our Payment Selling Options page for additional options, including information on the following topics: Selling an annuity is a business deal.
Regardless of how you find a buyer, all reputable factoring companies should: Selling the rights to future annuity payments is a legal process.Often, your factoring company will provide you an attorney as part of process, but a high-quality company won’t discourage you from having your own lawyer.For additional information on how to sell your annuity payments, payout options, or how to calculate payment amounts, our frequently asked questions page can be a useful resource during your financial journey.Most offers come in at 60 – 80 percent of the original value.For this reason, we advise people to hold on to as many future payments as they can.
In the event you need immediate cash for a certain period of time, you can sell payments in exchange for a lump sum.