HOW can I Leverage a Structured Settlement to Your Advantage?
When you receive a structured settlement through a lawsuit or other means, the steady funding source can certainly have an impact on your finances month to month. After all, having a monthly annuity payment to count on is as good as having money in the bank. Or, is it?
If you have a pressing or immediate need for cash or a desire to simply have more control over your own financial future, those small monthly payments can actually be a thorn in your side. It can be frustrating to have a large annuity in your name, but no way to gain full access over the funding.
There is a way to leverage the money you have tied up in that annuity. You can get cash for structured settlement payments. When you make the choice to sell annuity payments, you don’t necessarily have to give up the monthly income stream either. You can choose to sell the whole amount or a part of it.
If you’re ready to explore the option of selling your structured settlement for money you can better leverage to your advantage, Commercial Capital Worldwide Funding Settlement is here to assist. With more than two decades in the field, our team of experts can guide you through the process no matter your home state.
Commercial Capital Worldwide Funding Settlement is an established company that serves to purchase streams of income. Whether you want to sell a structured settlement received following a court case or you have lottery winnings that would serve you better in a lump sum, Commercial Capital Worldwide Funding can help.
When you gain access to your own money, you will discover a world of possibilities open up to you. Selling a structured settlement can give you the funding to realize your dreams and do such thing as:
Pay off debts – This might be one of the biggest reasons why people just like you seek to sell structured settlement payments. Taking the money in a lump sum rather than waiting for monthly payments can enable you to pay off debts and put you in a more comfortable financial position moving into the future.
Make major purchases – If you’d like to buy a home, rehabilitate the one you live in or even invest in a business of your own to make more money, structured settlement sales can assist with the funding. While the amount you will receive will depend on the annuity amount, the payment frequency and a variety of other factors, having a lump sum to work with can make purchasing big-ticket items much easier.
Make more lucrative investments – A structured settlement is not an investment that will grow over time. When you have an opportunity to make a sound investment, passing it by because an annuity has your money locked up just doesn’t make sense.
A structured settlement can serve you well. Sometimes, however, it just makes more sense to be able to leverage your own money. When it’s time to consider buyers of structured settlement payments, Commercial Capital Worldwide Funding Settlement can facilitate the process and help you realize your goals.
Senior Settlements Put Money in the Bank Seniors facing the need or desire to alter their financial planning do not necessarily have to leave money lying on the table. Senior settlements related to insurance policies or annuities can often provide the perfect solution to put money in the bank right away.
At Commercial Capital Worldwide Funding Settlement it is our business to help seniors obtain the money they need now by facilitating the sale of whole life, universal and convertible term policies. We also specialize in helping seniors sell annuity payments or other structured settlement agreements.
What are structured settlements?
Many times when individuals are in involved in accidents or wrongful death settlements with insurance companies they elect to receive a series of payments over a longer period of time instead of an immediate lump sum. These payments normally total more than the amount one would have received at settlement. In order to make this election, the Plaintiff must sign a Settlement and Release Agreement that allows the Defendant to purchase an annuity policy to provide for the payments to the Annuitant. The Annuitant does not own the annuity and does not have the right to sell the annuity. He does have the right to receive and sell the payments to a third party.
Who are the potential sellers?
There are several reasons for a person to sell their annuity payments. Medical emergencies, loss of jobs, accumulated debt, starting a business, or any financial emergency that can plague a family can cause the need to sell. Selling their annuity payment offers a source of funds that is not available from traditional sources if their credit is bad.
Is it legal to sell my structured settlement?
Yes. Although your settlement agreement may include anti-assignment or anti-acceleration language, it has been supported in numerous court cases that an annuitant does indeed have the right to assign the payments. During the last few years there have been numerous state statues passed which regulate the transfer of any payments and may require a court order. In addition, as part of H.R. 2884 enacted in July of 2002, any transfer must be in accordance to an applicable state statute or the purchaser must pay an excise tax on the total discount. This tax is onerous enough to prohibit any purchaser from making a purchase that does not qualify under a state statute.
Can I sell just a portion of the settlement?
Yes. We encourage annuitants to not sell any more of their payments than is necessary. We can buy specific lump sum payments or a portion of each payment. We can even buy a portion of the monthly payments. This will allow the annuitant to retain part of his cash flow without discounting all the proceeds. If a certain amount of money is desired to satisfy an obligation, then a partial sale can be styled to meet that specific need.
How long will it take to get my money?
Due to the steps involved in the mandated court order process it could easily take a minimum of sixty days. To facilitate the transaction and help preclude additional delays all the participants need to respond in a timely manner.
How much will I receive?
The amount we can pay for the annuity is dictated by three factors:
1) the amount and timing of the payments we are to receive
2) the probability that the issuer will make the payment on time and in the full amount
3) the current economic conditions such as interest rates
All other factors being equal, we can pay more for payments that will be received sooner than those that will be received several years from now.
Will I owe taxes on this money?
We cannot offer tax advice and you should consult your tax professional. However, on June 10, 1999, the IRS issued a Private Letter Ruling 119273-97, which confirmed that an individual’s sale of structured settlement payments would not create a taxable transaction. In addition, HR 2884 confirms this ruling.
Does my credit rating have a bearing on a sale?
In most cases your credit rating has no bearing on the transaction.
Why would I sell my annuity?
A person’s financial situation changes over time. When a settlement was originally made, it was satisfactory for the annuitant at that time. Over time the situation changes and financial hardships or opportunities appear that require a sum of cash now, instead of a later date.
How do I receive a quote for the purchase of my payments?
Simply fill out our form and we will contact you with an initial evaluation of your annuity. We will then request that you fill out a simple Application and provide copies of the annuity policy, settlement agreement, and any other pertinent documents in your possession. This will enable us to provide a competitive quote in writing within 24-48 hours.
Why should I consider using your company?
Be sure to consult with Commercial Capital Worldwide Funding before making a decision. We pride ourselves on:
· Fast closings
· Excellent customer service
· Trained professionals to assist you
· Competitive quotes
· Providing customized options
· Strong financial backing
· Over fifteen years of experience
· Flexibility on all purchases
· Confidentiality with all transactions
· Credibility in the industry