The advantages one can get from having a structured settlement annuity are quite a few. 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. However, if you need the money or simply have better investment options, you are entitled to it.

The federal law HR 2884 permits you to sell your structured settlement payments without paying any taxes. In addition to federal laws, more than two-thirds of states in the United States allow the sell of structured settlement payments. The most important thing in this is that in both the cases the sale has to approved by a 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 approval or otherwise will be given by the judge after reviewing your case to decide whether you require this money for a transaction that will benefit you and your dependents.

The judge might not refuse court approval for selling your structured settlement payments if you are an adult with a sound mind and also if you can prove that this sale is beneficial to you and your family. Your personal appearance at the trial will help in getting a positive verdict. If you are not approved in court, you can still sell your structured settlement payments.

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 might not charge you for this extra effort; you must realize that you may have to pay taxes on the money received in the absence of court approval.

Quotations have to be obtained from various purchasing companies for purchasing the settlement. It is always beneficial for you to get multiple quotes. If you like a quote that is given, you will send in copies of the structured settlement policy to the purchasing company. In return, the purchasing company will send you a disclosure document for your signature. You will find in this document the details of the conditions of the transaction. It must be singed and returned.

Next, the court order process will begin. This process takes up to 90 days depending on your state of residence as well as your insurance company. Once court gives approval it might take 10 days to get your money.