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by: FrankReCouperSr.
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What are some things that you need to know about before cashing in your structured settlement annuity.

A company or broker has to be found, who deals with the sale of structured settlement annuity payments.

The structured settlement buying company or broker's expertises must be checked. Buying structured settlement payments is not easy.

Go to your local Department of Consumer Affairs to see if there are any lawsuits being filed against the company or broker buying your settlement.

If the person you are talking to seems genuine and has your interest at heart than you may have the right person. No one has all the answers, but any one who you feel is willing to take the time and make you feel comfortable about what you want to do is the right person. Trust your instincts.

How long will it take to get the Structured Settlement Money?

It's going to take a minimum of 1 and a half months to 4 months. Anyone saying less time is not to be trusted.

1. A Court Order is required. It is now required by all states for a court order to be issued. If there is no court order, a tax equal to forty percent must be paid on the total amount of payments being sold. Do not fret, this is a good thing ? it makes selling your settlement a little safer.

2. We need a copy of the annuity and other documents from the the Insurance Company. This takes time, some companies send it out quickly others will take their sweet time.

3. Different funding companies have requirements that make it important for your company or broker to know which company buys what. It saves a lot of time and you get your money quicker.

4. Its good to have an A rated Insurance Company holding your annuity. Selling lower rated companies annuity payments, will get paid less money. Investors are looking for the safest investment for their money.

5. Necessary documentation: Copy of the annuity, the settlement agreement and release, photo ID, recent payment check , any child support payments out standing and application for selling payments. A honest expert can help you gather these documents.

What will Cashing Out Cost Me? Most likely you are going to be some what disappointed in the amount you receive. Total up all the remaining payments and know that cashing out will offer you much less than that. They based the structured settlement on a certain amount of money put into an annuity and then that principal amount, plus interest paid out, equaled the settlement amount. Consider other options before selling your payments.

Selling your structured settlement isn't easy. What about a tax consequence? IRS in a private letter ruling said that there isn't any tax liability for selling a structured settlement.

When selling your structured settlement, think about selling only a portion that will meet your current needs, and leave the rest in an annuity so that you will still receive some sort of monthly income. A financial emergency or other unexpected expense may come up requiring you to access and sell a structured settlement payment in the future.

Selling structured settlement payments now, can result in financial problems down the road. So be careful.

About the Author

Frank ReCouper Sr. has been in financial services (financial planning) for over 45 years. Buying structured settlement payments for 17 years and can be reached by going to R

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