Should You Get Cash from Structured Settlement Payments? Here Are 3 Reasons Why

You can get cash from structured settlement payments if your smaller payments simply aren’t getting the job done. Receiving a check in the mail every month sounds like a great idea to most people. However, for some people who are receiving small, regular distributions from a prior lawsuit settlement, having to wait for their money may not be working for them, so they wonder whether they should get cash from structured settlement payments. And that may make sense – there are actually three reasons that people might have for wanting to sell their structured settlement payments.  These reasons are:

  • When the structure wasn’t right in the first place.
  • When the annuitant’s situation has changed.
  • When an annuitant is dead-set on selling, even though the first two conditions may not be present.

 
Let’s consider each of these reasons to get cash from structured settlement payments more carefully.
 
The Structure wasn’t Right in the First Place

In this situation, the actual structured settlement payments may not be helping the annuitant – the small payment simply may not be enough, perhaps it was never enough. This person really needs a lump sum of money. This situation is rare, but it happens. Usually, the court and lawyers consider the person’s situation and strive to create a settlement that is in their best interests. However, mistakes and oversights happen and it is possible that the terms decided on simply were not the best choice. This may be a good time to get cash from structured settlement payments.
 
The Annuitant’s Situation has Changed

More commonly we find that the structured payments served their purpose at the time they were created. However, something happened in the life of the annuitant that changed this – they may have lost their job, moved, become sick, or gone back to school. Something changed. Now, with this change, the small payment is not needed or is not sufficient, yet the present cash value of those payments may make a critical difference in the annuitant’s life. This is a good time to sell payments.
 
The Annuitant is Dead-Set on Selling, No Matter What

This third situation is the dangerous one, in which it is very likely that the annuitant will be taken advantage of. If the payment is working as intended, and the person’s situation did not change, then this probably just means that the annuitant wants to have their money all at once, but really doesn’t have a pressing need. Remember, when you sell your payments it will cost you some money, thus this is not something to be done lightly.
 
Making the Best Choice

There are companies that run aggressive advertising campaigns to encourage annuitants to get cash from structured settlement payments.
 

These companies do not take the annuitant’s situation into account, many of them charge excessive rates, and they make themselves very easy to contact.

 
If you are a broker or attorney and your client has called you looking for advice on selling structured settlement payments, these are the companies that annuitants will call if you do not help them. If you are the person looking to sell your payment these are the companies that will take advantage of your need.
 
Strategic Capital provides a better alternative. We offer post-settlement solutions to annuitants whose financial needs have changed. Although our solutions involve the purchase of structured settlement annuity payments, we believe that annuitants should only sell their payments if it makes good financial sense. Our fair and ethical approach has earned us the support of the Consumer Attorneys of California and the National Association of Trial Lawyer Executives. We stand ready to help you, or to help you help your clients.

Published : April 25, 2013

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