Structured settlements are claims awarded by courts to individuals who have suffered losses from torts. In most cases, they are injury settlements given to claimants. Redeeming them for a given amount of money needs accuracy to enable claimants get the value for money as deserved.
Reasons for selling structured settlement
To begin with, financial constraints prompt individuals to redeem securities for cash. Such money is used to settle pressing matters such as college fees, carrying out repairs in a home or acquiring a new one. Venturing into a new type of business may require huge finances hence prompting individuals to sell the security.
Secondly, one may be undergoing personal matters such as bankruptcy or divorce. Through this one settles or pays debts such as credit cards. A long term debt such as a mortgage may require one to liquidate the structured security.
Factors to consider before selling structured settlement
Start by assessing the need of selling the security. Assess the need to urgently settle a debt then liquidate the security. However weigh in the residue value of the security before trading it off.
Secondly, consider the legal existence of a company. Carry out research on the legitimate firms around you that offer services such as trading off of securities. Remember they will be recognized as third party claimants to the security.
Finally, check the amount of time and cost of undergoing the process of transferring the security to a third party. Recall that the process of selling the insurance has to undergo a court process hence the need to examine expenses and time incurred in the long run.
Process of selling structured settlements
Begin by evaluating the financial soundness of your fund reserves. This enables one reach to valid financial decision on why to sell the security in the first place. Proceed to shopping for discount rates offered by a number of third party firms. Ensure that the firm is reputable and offers good discount rates as well as experience in the field.
Select the desired third party firm and proceed to starting the sale process. Get every contract in writing, for example annuity forms, settlement and transfer forms. It is vital for one to observe accuracy in the process by verifying every contract signed.
Remember to involve as lawyer in the entire process. Ensure that the sale is approved by a magistrate by giving reasons as to why you are redeeming the security and give assurance that beneficiaries will be well catered for. The magistrate then signs and issues an order for money to be wired to your account.
0 komentar:
Posting Komentar