Annuity payments are the by-product of structured settlements, in an attempt to compensate the injured party and dismiss a case filed against the defendant. They are usually released periodically through a third party company, which helps maintain the settlement and manage the finances of both entities involved. More often than not, plaintiffs prefer the orderly and scheduled payment releases that are provided by brokers, as they are tax free and legal. But, there are instances when periodic releases are too far apart, or bigger incentives are required by the petitioner, and this prompts them to entertain the option to sell annuity payments for a lump sum. Although seemingly reasonable, there are great risks attributed to lump sum payments and it is possible that they will not meet the true economic value of the annuity settlement. So instead of getting more, the plaintiff actually gets less - which puts him in a compromised position.
If one must give up his annuity, it is best that he only sells a part of the structured settlement - not the whole. There are brokers out there who accept such terms without demanding interests or huge service fees. It is essential that the plaintiff canvasses the market thoroughly to find the best quote. He should also seek the counsel of an attorney or financial planner, so that he will know his rights and options. State lawyers are free of charge and there are those who can be paid on an hourly rate. Aside from guidance, lawyers will also represent the plaintiff in his claim, take care of the paperwork and get the sale court-approved. Obviously, the transaction will take time. So don't believe a broker when he says he can offer you instant disbursement for the annuity sale. He is clearly doing something illegal and is not looking out for your best interest.
Partial sale of your structured settlement can be likened to a cash advance or loan. They are not much, but, they do give you that guarantee of retrieving your annuity payments eventually. When the sale is done and you receive the requested amount, the broker will start retaining a portion of the structured settlement until such time that the amount owed is covered. Then you, as the rightful owner, can recover it and resume acceptance of the periodic annuity payments and spend them according to your preference.
It is strongly discouraged for anyone to turn over their claims on the settlement and sell annuity payments as a whole, since the disparity between the present and future intrinsic value of the annuity cannot be avoided. Besides, no broker would ever pay too much for these types of investments. As such, the only one who stands to gain from the whole transaction is the buyer. If you need quick cash, then approach family and friends for credit, and present your annuity as payment guarantee. If they can't help you, pawn something of value that you possess and just buy it back when you have the money. There are several other courses you can take. You don't have to wager your future today.
For more information on how to sell annuity payments and for more information on annuity payments, visit our website http://www.fairfieldfunding.com/sell-annuity.html.
ليست هناك تعليقات:
إرسال تعليق