Can You Sell Payments for Children, Elderly and Disabled?

A Guide to everything you should know about selling.

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Chapter 6

With structured settlements how to sell payments your dependents own can be difficult

When it comes to structured settlements how you sell payments for a dependent is a difficult question to answer. Structured settlements can be paid to almost anyone – young, old, and in between. If your child or mentally unstable, elderly parent has a settlement you may be in control of how that money is managed. If the family is in trouble or the person in question has a specific financial need then you might wonder if you can sell structured settlements for children to get some cash now. The short answer is that yes, you can. But it can be a challenge.

In the Best Interests of the Person

If your child is 18 or over, and of sound mind, then it will be up to them to attempt to get permission to sell their payments. The same is true of your elderly parent; unless a doctor has declared them incompetent, to sell or not to sell will be their decision. But if you are the person responsible for the finances of your child or elderly parent you may have the right to sell their settlement. However, that sale must be in the best interests of that child or parent. The court will require it. So when it comes to a structured settlement, how to sell for your child or parent is easy to answer: ensure there is a need then follow the standard process.

An example of a sale of structured settlements for children being in the best interest of the child or elderly parent might be if the person needs expensive medical treatment, beyond what the payments can afford. Or if they require special schooling. It could, though, in some cases involve saving the family home, but a situation like this is more blurry and would be up to the individual judge. In short, you have to show that the sale is in the best interest of the person who owns the payments, not you. This can be challenging.

Ensure that you have a sound argument!

Selling settlements that belong to those who cannot make decisions for themselves, such as children, is the most difficult thing to get court approval on. Before you try to sell a child’s settlement ensure that you have a really valid reason for doing so, one that is clearly in the best interests of the child.

Protecting their Rights

The court approval process is designed to ensure that the rights of the person who owns the payment are protected. If you want to sell payments for a dependent then likely the court will appoint what is called a guardian ad litem, that is a person who can examine the situation from the outside and make a recommendation to the judge. When it comes to structured settlements for minors sales the court is very cautious.

The role of the guardian is to do just that, to guard the person, to protect their interests. When it comes to their structured settlement how to sell is all about this protection of interests, and taking your time. Selling payments of such a dependent will usually take longer than it would to sell your own payments because this appointment, appraisal and recommendation process takes time. In addition, there is a much lower rate of approval for sales of minor’s payments than for adults. But if you truly feel that this sale is in the best interest of your dependents then you should call Strategic Capital today and give it a try.