by Structured Settlement Watchdog®
Can Structured Settlement Annuities Be Sold?
Structured settlement annuities cannot be sold by structured settlement recipients. There is alot of misinformation being given to both sellers and investors. Investors cannot buy structured settlement annuities.
Clearly the companies that offer lump sums for structured settlement are making enough money to support huge advertising budgets so what are these factoring companies buying?
If Structured Settlement Annuities Cannot Be Sold, Then What Is JG Wentworth Buying?
Structured settlement payment buyers are paying discounted lump sums of cash for structured settlement payment rights. The term "structured settlement payment rights" is at the heart of IRC 5891, the section of the Internal Revenue Code that governs structured settlement factoring transactions (also known as "structured settlement transfers").
What is required in order to sell structured settlement payments?
In order for a transfer of structured settlement payment rights to occur, a judge in your state must approve the "structured settlement factoring transaction" as being in the best interest of the seller and any applicable dependents.
If you sell structured settlement payments for a lump sum is the lump sum taxable?
If the structured settlement was established to pay for damages on account of personal injury or sickness (as set forth in IRC 104(a)(2) and the sale complies the state structured settlement protection act, there are no income taxes on the lump sum.
It is a good idea to seek independent professional advice before selling structured settlement payments.