Basic Tips to Purchase Structured Settlements

Structured settlements arise from the settlement of lawsuits. It is usually where companies settle a case out of court and a lump sum is paid to the defendant as a result of defective medication or products, injury, accident, malpractice in the medical profession to name a few. These settlements can work out to be a large sum and in most cases the monies are paid via a fixed sum on a timely basis. The basis can be monthly, semi-annual or yearly or whatever is decided upon by the two parties involved. Another reason for these structured settlements is because in many cases, the individual or parties involved are unable to work or maintain the expected standard of income that would have been enjoyed prior. These amounts when paid over a period of time will equate to the affected individual receiving more money, since interest accumulates on the unpaid portion at any given time.

There are companies that purchase settlements from individuals. This benefits the settlement owner if a lump sum of money is what is needed at that point in time. It may be required for a meaningful purchase such as real estate and education; however it is always important to weigh very carefully the benefits derived from the lump sum payment and the long term installments received on a timely basis.

In order to purchase or invest in these settlements, the transaction has to be profitable or lucrative to the purchaser. There is usually a fee to be charged, which will be calculated as a percentage of the settlement. The long term investment and therefore the long term interest to be derived from the purchase is another benefit derived. In many cases, dependent on the state in which the settlement resides, approval by the court is required to purchase structured settlements. This is to determine that any purchase of structured settlements is done in good faith and that the settlement holder is not taken advantage of in any way by the purchaser. It also serves to ensure that the settlement holder is in fact making a correct decision and not selling blindly without thinking of the future.

When attempts are made to purchase these settlements the settlement holder can agree to sell part of the structured settlement. In this way the holder not only benefits from receiving a lump sum from the sale, but continues to receive some of the pre-determined payments on a timely basis.

The purchase of structured settlements requires a lot of thought between the both parties involved. The purchaser does not want to enter into this transaction if the company paying the structured settlement is not sound or profitable. The seller does not want to venture into a frivolous sale which cannot benefit in the long term and compensate for the loss of the structured payments. These are just some of the concerns that need to be addressed when discussions are taking place to purchase structured settlements.

Factors Influencing Your Choice of Structured Settlement Buyer

Are you looking for a structured settlement buyer? Then, you should take several factors into consideration. This will allow you to realize the best deal as per your convenience. Assess how honest a buyer is through those initial conversations only. The sign of a good buyer is someone who could provide you with additional information along with the usual pros and cons of sales. If the buyer is a funding company, then your task becomes much simple. This is because you will be having the advantage of going through its corresponding website and know about services offered. You can benefit a lot financially by regarding such information.

Qualities of a Buyer

You need to show optimum care in choosing a structured settlement buyer. This is because the buyer could be a skilled individual or a financial funding firm with years of experience. You will be tricked in case you are slightly heeding to their words. Ideally, the sign of a good buyer is someone who agrees to pay the amount you have quoted. It is better to deal with a buyer in a single point of contact. You need a lump sum amount of your annuity in this regard. Additionally, an ideal buyer is one who pays you the needed amount as per your agreement based on the quotes of a company.

Need of the Hour

The services offered by a structured settlement buyer can be realized the most whenever one is in crisis. Imagine a situation when a person has met with an accident. Meeting with expenses of treatment charges and other wellness costs can be ideally done by approaching your insurance company. But, if you could consider the services of a buyer in such a situation will be even more beneficial for you. This is because you will be at the receiving end when you are need in of your policy's money to purchase a home or car. Shortage of funds will trouble you a lot.

A Tricky Situation

Sensing the importance of money you need, a structured settlement buyer might trick you into coughing more money. This might result you in coughing charges that are over 50% even during certain situations. However, there are buyers who consider your payment offer leaving huge profits for you. This is the same situation as that of winning lottery. The reason could be attributed to annuities alone. This is the reason why structured settlements work the most when you own an insurance policy or an annuity. It is a rarity to find mortgages fitting into this bill.

Selecting the Buyer

Your choice of structured settlement buyer is cumbersome when there are a lot of them available. Most of them advertise with a wide range of features to attract sellers towards them. But, you should not select a buyer based on these features alone. Try to get more information about the buyer like since how many number of years service is being offered, a list of clients available and, most importantly, the amount of success with a buyer performs.

Structured Settlement Lump Sum - What You Need to Know

When both the lawyer of the defendant and the lawyer of the complainant know how a certain lawsuit will turn out, they strongly recommend their clients to have an agreement outside of the court. Most of the time, it is the lawyer of the defendant who initiates the discussion of this agreement. This is because he knows very well that his client will either face bankruptcy or a huge one-time expense once the ruling of the court is released. The discussion almost always ends up with an agreement such that the lawsuit becomes dismissed if the defendant agrees to periodically pay a certain amount of money to the complainant until a declared amount is reached. This agreement is called structured settlement. However, there are times when the complainant wishes to obtain the total amount of money declared on the agreement in just one strike. This one-time big money payment is also known as structured settlement lump sum.

There are several reasons why a complainant (known as the "claimant," once the settlement has been agreed) will want to obtain the structured settlement lump sum. One is because of an emergency expense that requires immediate payment of a huge sum, such as an immediate medical treatment. Another reason could be that the claimant wants to immediately pay a debt, such as a loan on a car, because the interest that it may procure over time is larger than the total value of the structured settlement. It could also be that an immediate purchase has to be done, or that the claimant sees an investment that will give greater returns than the total value of the settlement.

Whatever the reason could be, a claimant who wishes to obtain a structured settlement lump sum should not expect to obtain a sum of money that is equal or greater than the total value of his settlement. This is because in order to obtain the lump sum, there should be a buyer for the settlement. In order for a claimant to have a structured settlement lump sum, he has to sell his settlement to prospect buyer. The buyers of a settlement will always seek minimize the price that he has to pay for the settlement in order for him to maximize his profit, while the sellers will always seek to sell his settlement on the highest possible price. A negotiation on this matter will keep on going, until the transaction of transferring the structured settlement is agreed upon by both parties.

Why To Purchase Structured Settlements - The 5 Profitable Reasons

To purchase structured settlements means, that you have to be able to get the same benefits as the original receiver. Because the federal administration has given the benefits, they can advice, whether you as an investor can get them too, if you will purchase structured settlements.

In most cases the settlements will be paid, because the court has decided so. Most often an insurance company will do the payments, but the court wants to decide, whether an investor can purchase structured settlements and whether the seller is allowed to make the sale. For instance, any hidden sums are not allowed.

1. Helps The Planning.

For an investor the settlements are easy, because he will receive a sure payments along an agreed timetable. So the main thing is to make sure, he will get the program with a price, which makes it possible to earn enough profit. Of course there is the risk as to the other parameters, like the interest rate levels during the running time and the development of other assets during the same time.

2. Gives A Tax Free Benefit.

The periodic settlements are mostly tax-free. This is very important for the investor, when you think, how much taxes you usually have to pay from the results. Note, that not all settlements are tax-free, so you must be very careful as to the details of the plan.

3. Purchase, When The Economy Is Down.

When the economy is down, almost all investment instruments are too. On the top of that, during the down economy many people need money and some are desperately selling their assets. This is the right time to purchase settlements as bargain prices. The purchase price is the most important single factor in this deal.

4. Forecast The Future Interest Rates Realistically.

What the interest rates has to do with this deal? Well, the high interest rate eats the investment value, because the discount rate is then higher, which will decrease the present value of the investment.

5. Make Sure, You Get The Planned Benefits.

Because the settlement was originally given for another purpose and will soon be sold, it is very important to make a list about the agreement points and to guarantee, that you will honestly get the benefits after the ownership has been changed.

How Much A Structured Settlement Investment Can Profit

What really fascinates me with the structured settlement investment is the steady stream of income, which comes surely like a local train. There will be no risk factors, if you have remembered to check the background of the paying company, which is usually an insurance company.

Of course your profit targets are important, but I am sure you will also set value on the low risk feature of the structured settlement investment. During the deal process, the main thing is to get the program with the bargain price.

1. Who Sells These Programs?

This market is a special market, where certain brokers operate. The job of the broker is to find a buyer for the settlement program, which is for sale. The brokers can also guide, how the court will handle certain things during the process. This is important, because these deals involve a lot of working hours and if the court would reject the deal, the investment in time would be lost.

2. The Federal Structured Settlement Act - What Is That?

Most investors, who want to invest into settlements do not know, that the federal law regulates these deals a lot. The Federal Structured Settlement Act was issued in 2002 to regulate actions against unhealthy practices of some companies, which offered cash for the settlements.

Before the deal is closed an investor has to make pre-contract disclosures about the key things in the deal. Every time an investor wants to make a structured settlement investment, he has to get the court acceptance.

3. Why The Calculator Is Useful?

The calculator helps to count, how much some future payments has value to-day. But before you start to calculate, you have to know, whether the settlement is paid for some fixed time or for the life of the accident victim. The investor will pay less for the latter versions.

With the help of the calculator you can easily calculate the present value of the program. After that you have to use a certain discount factor to make the investment profitable. An industry standard is to offer 60 - 70 % of the net present value of he program.

4. Be Cautious.

All in all, the investor must be cautious. The settlement investment is a god deal, when an investor knows in advance the legal and financial facts. And you have to learn, how to use the calculator to get the present value of the program. If you have small experience, get an expert guidance.

Buyer of Structured Settlement - What You Need to Know

Structured settlements of other people can actually be used to gain considerable profits. This can be done by buying a settlement. A buyer of structured settlement can profits in this way by buying the rights of a settlement at a lower price than the face value of the structured settlement at hand. The lower the price of a settlement has been purchased, the higher the buyer's profit becomes. Note that even though a buyer of settlement and its seller are the key parties in the process of transferring settlements, there are also other participants that have to be taken into account.

The guiding principle for this kind of transaction is that the purchasing (or selling) of a certain commodity takes place when there is a disagreement in value, while there is an agreement in price. In the case of purchasing (and selling) of a settlement, the commodity is the settlement itself. The seller of a settlement sees its periodic payments to be of less value than the price he is willing to sell it for. On the other hand a buyer of structured settlement places a higher value for the total amount of the structured settlement than the amount of money that he is going to pay for it.

A smart buyer of structured settlement will take advantage of this principle by making the seller' settlements seem to be of less value. One way to do this is by putting pressure on the seller's mind so that he immediately sells it. There is also another way for the buyer to make the settlement underpriced. This is by making the seller see that the purpose of selling the settlement is so urgent that the selling price that is being proposed will actually be enough. In other words, the buyer has to make the seller desperate for the price that he is proposing.

Although a buyer of structured settlement and its seller are the main players in the process of transferring settlements, there are also other parties that have to be greatly considered. One of those is the legal consultant. Remember that a settlement rooted from a lawsuit so the buyer has to be sure that the only thing he has to do is pay the declared price of the settlement, while he collects the regular payment of money done on the rights that he has bought. He has to make sure that he is free from any other legal obligations that are owned by the claimant (the seller) and the defendant (the one where he reaps his profit).

The Benefits Of Structured Settlement Investments

Are you a recipient of a court settlement? If this is the case, have you ever heard of structured settlement investments? By taking this option, you never have to go the full nine yards in getting the money you deserve. This is a way to cut down on the time it takes to get a significant bulk of the settlement in no time.

How Court Settlements Work

If ever you win a case in court, you will most likely be the recipient of a substantial amount of money. However, you do not get the entire amount right there and then. You actually get paid the entire amount in a matter of months or even years. In a lot of cases, if the amount is a large amount, you have to wait almost a lifetime to get fully paid. There is just no way to get the whole amount in an instant.

The Problem

We can never predict what the future may hold. No matter how well we plan things, there will always be unforeseen situations that we will never see coming. There might be situations when you may need a substantial amount of money. If ever a need presents itself, there will be no way for you to capitalize on your settlement.

The Solution

Thankfully, there is a solution to this problem. The solution can be found in structured settlement investments. By taking this option, you no longer have to wait a long time to get the bulk of the settlement. Here, you get a significant amount of the settlement in an instant.

How It Works

There are various firms who are interested in purchasing your settlement for long term investment purposes. They offer to buy your settlement off your hands at a discount. Regardless of this discount, you get most of the money in a flash. This simply means that there will be no more need to wait for months or even years.

The Benefits

Structured settlement investments have a lot of benefits. The only drawback is a 10 to 30 percent deduction. Here are those benefits:

- Getting most of the money as soon as the settlement is purchased
- Having ready cash in cases of emergencies such as accidents, health care of loved ones, and health care for yourself in case something happens
- Settling debts without having any need for loan restructuring
- College expenses without having to deal with interest rates
- Business opportunities
- Investment opportunities
- Whatever immediate need you might have

As you can see, there are so many benefits when taking the option of structured settlement investments. You never have to wait a long time to get the money that is due to you. You will never be caught off guard. You can take advantage of any opportunity that comes your way. You can pay off your debts in the least amount of time. You can satisfy whatever immediate need you may have. This is a ready option you can take. These are the benefits of structured settlement investments.

Is The Structured Settlement Investment A Real Investment?

Maybe not! If that is the case, you better read this article to get the basics of the structured settlement investment. If you think, the basic nature of the settlements is that they are investments in the future, because they are paid during a certain time in the future.

1. The Structured Settlement Investment Has Rules.

Because originally the settlement has been given as a compensation of the injury, and most often as a result of the court judgment, so the court acceptance for the deals are needed. The court will check the seller`s financial needs, when the structured settlement investment is as a petition.

The court will also check the reputation of the buyer. The deal cannot include any hidden expenses.

2. The Seller Wants The Money Now.

It can happen that after the original settlement the financial situation of the receiver has changed and he needs cash money urgently. In this case the court will handle his or her situation again and may allow the sale of the settlement.

3. You Cannot Wait.

The court has decided, that you will get periodic payments, but before the schedule starts to roll, you have to wait months, maybe years. This can be a big problem and leads you to think to sell the settlement program. As a seller it is the settlement investment, which must be profitable, before it becomes reasonable.

4. How Much Cash Can You Get?

The money to-day is more valuable, than the money to-morrow. This general fact means, that the investor, who takes the settlement investment into consideration tries to offer as low sum as possible to make big profit. What you need to do is to get several quotes from around five investors to make them to compete against each other.

5. The Investor Benefits.

The investor must also be careful. The first thing is to check, whether the seller is financially sound company, because there are also total scams on the market. The other things are the forecast of the future interest rates and the development of the economy. The good thing is, maybe the best part of the profit, that the settlements come as agreed and are tax free.

Buy Structured Settlements, If You Are A Personal Injury Victim

Actually, when you buy structure settlements, you will get three main benefits. Maybe the biggest one is the tax benefit, but by buying the settlements you will protect your money in the future, because the sums are paid monthly. The third benefit is that when you buy structured settlements you have better chances, together with other estate planning, to get Medicaid.

1. Buy Structured Settlements, Because Of Their Tax Benefits.

The tax benefits are not of course your only reason to buy settlements, but it is a real benefit, which the lump sum cannot offer. If you will get settlements, you will avoid the federal taxes. Note, that the settlements for the lost wages are subject to the taxatíon.

2. You Can Avoid The Waste Of Funds.

Those companies, which sell settlements argue, that they can compensate the plaintiff for the injuries, medical care and the future lost wages. But very often the settlements can protect minors, incompetent or unsophisticated persons

The fact is, that not all people are able to manage their assets or to plan the future usage of their money. For them the settlements are a gift from heaven, because they will get an agreed sum every month, and they cannot take loan against the program. If the personal injury victim is a minor and his or her parents cannot make the financial plans, it is wise to buy settlements to protect the future economic safety.

3. The Future Medical Care.

Many personal injury victims will buy settlements to guarantee the funds for the future medical care. In some cases better benefits can be got from a special needs trust. The idea of the special needs trust is, that a plaintiff can get the settlement benefits without disqualification from the Medicaid. You better consult with the estate planning attorney or disability needs planner.

4. The Plaintiff's Benefits.

The main thing is of course the plaintiff's financial needs, but the plaintiff makes it wise, if he will go through all things, which come with the settlement decision. The main financial benefit is the tax benefit. But the settlements are also good tools to avoid waste, fraud and mismanagement of the funds. Check also whether the special needs trust would be the best option.

How To Buy Structured Settlements - Practical Guidance

But an investor can buy structured settlements from the secondary market, where it works like a normal investment instrument, like a bond. If an investor wants to buy structured settlements, he has to notice, that the federal laws regulate these actions and the court acceptance is always needed.

1. The Broker Finds The Buyer.

The settlement market is a special market and the successful brokers are specialized in these products. Ask references and make sure the broker candidate belongs to The National Structured Settlements Trade Association. And talk with the investor, who have used the services of this particular broker lately. When you buy structured settlements you have to avoid scams.

2. An Attorney Is Needed.

Already a broker can forecast, what actions have chances to go through in the court, which has to accept every deal. But because these transactions are full of important details, it is useful to hire an experienced attorney, who can check all the important details.

3. Use The Calculator To Get The Present Value Of The Settlement Program.

When you will buy settlements, you will buy payments, which will happen during many years in the future. Because the money received later is less valuable, than the money received right away, you have to make the calculations. You have to discount the future payments into the present value by using a certain interest rates. For this you will need a settlement calculator.

Now, when you know, what is the present value of the candidate program, you will make an offer. This market has industry standards, which regulate the price settings very much. A usual quote is to offer 60 - 70 % of the present value to guarantee an accepted profit. The terms of the settlements have big differences. If the settlement will pay during a certain amount of years it has more value, than a settlement, which will pay during the life-time of the receiver.

4. Your Brokers Must Ask Multiple Quotes.

This market has buyers and sellers like in whatever market. It means, that you have to use the competition power in order to make the bidders to compete against each to lower the prices. It is wise to buy settlements during a low economy, because then these products are cheaper.

5. Make Sure You Will Get The Benefits In The Contract.

As said the Federal Structured Settlement Act regulates the transactions, because the settlements have benefits, like the tax-free feature, which are very special ones. The tax-free benefit can be the biggest part of the future profits, so it is important to guarantee that you as a buyer can get it. It is wise to let the attorney to check the terms and to discuss with the court before you sign anything.

Think Before You Sell

Dealing with money issues can leave a person feeling uneasy. Many times they need just a little help. Some of us may need the assistance of a financial expert to help us manage our options and determine the best courses of action to be successful. This is also the case with the selling of a structured settlement or annuity. It can be difficult to determine if selling your settlement is the right thing to do for your situation. Reviewing your options with a professional to help determine your alternatives will aid in navigating the multiple regulations surrounding your settlement and help you to determine the best course of action.

Financial obligations and the choice between taking out a loan and selling your structured settlement payments to meet them should not be taken lightly. The value of your money and the extent of your need to receive your funds ahead of the scheduled payments are primary factors. It can be to your advantage to take a lump sum payout as an alternative to taking out a loan in order to achieve your financial goals..

Protecting your credit by avoiding foreclosure or making medical payments are prime examples of why you may need to get your payments ahead of schedule. Life can change and a lump sum of cash can be a large help toward getting through unexpected hardships. In the case of an annuity you may want to change your investment strategy, the choice should be yours. You can't always plan for the unexpected and for that reason it is always best to be aware of all the options available to you.

There is more than one way to handle a structured settlement or annuity and knowledge is the key to financial stability. It isn't necessary to sell all of your structured settlement or annuity payments. In many instances your immediate financial needs may not require that you to do so. Selling part of your future payments could be more than enough to pay unexpected bills and protect your credit while allowing you to continue receiving your scheduled payments.

Again, it can be difficult to navigate through all of your potential options on your own. It is important to research what the possibilities are and then seek the help from someone in the know about the buying out of structured settlements. A firm that buys structured settlements and annuities can help clear up the confusion and cut through any potential red tape that you might encounter. The money that you were awarded in your settlement is legally yours and there are options available to you to get the funds you need.

Structured Settlement Payment Vs Lump Sum Payments

If you have recently won a personal injury lawsuit or a worker's compensation claim you might be faced with the dilemma of choosing between a lump sum and a structured settlement. With the settlement option you will receive periodic payments over a period of time. Both the options have their pros and cons and the choice is subject to individual circumstances. For example if you have deep debts which require fast cash you can choose the lump sum. You may even choose lump sum payments if you are confident that you will invest it right. However the temptation to spend all the money you receive through these payments might be greater and you might end up squandering your money over things you don't need.

Is Structured Settlement Payment the Best Option?

If you choose this option, you can organize and divide your settlement in a way that offers a certain portion of the payment immediately and spread the rest of the payment over time. The payments are predictable and this option is now being recognized as great options for long lasting income. The Congress has also showed its support towards this option by exempting them from federal and state taxation.

You can choose to structure it for any number of years. However this form of payment brings with it the inflexibility to use your money over the years. But with the help of an experienced company you can sell your settlements and enjoy the financial freedom you need.

Every individual case has personal considerations which will help determine the right choice. It is best to discuss with an expert the pros and cons of both the options for your case before you choose.

Structured Settlement Basics

If you have won or settled a lawsuit recently you will be aware of the term structured settlements. For example if you have sued the manufacturer of an appliance because you suffered an injury due to a faulty appliance. The manufacturer will have to offer a certain amount as compensation. This might be in the form of a lump sum and the other option is a structured settlement which will pay you installments over a period of time. These payments can be structured in a manner that best suits your needs.

You can choose from a simple yearly payment to other arrangements which provide you with an initial lump sum (to deal with any urgent financial requirement), monthly installments and deferred payments. With this you are guaranteed a source of income over a period of time or for a lifetime if you choose to have it. However you need to know that you will be stuck with the terms of the structured settlement for life. You cannot change it in months after you have chosen it.

Have a Structured Settlement but Need Immediate Cash

This is not surprising in a day when financial emergencies appear with no warning signs. Although settlements can be very useful they may turn out to be cause of distress if you cannot access the funds you badly need because of the terms and conditions. However you can choose to sell all or part of your settlements when faced with immediate financial needs. There are a number of companies which will simplify the process for you and offer legal advice so you are assured that you are taking the right step to fix your finances.

How Can I Buy, Invest, or Acquire Structured Settlements in the Secondary Market?

A structured settlement is a payment made to an injured person on a regular basis, either monthly or yearly, over a period of years instead of a one-time payment when a lawsuit gets settled. Settlements like this usually result from wrongful death, personal injury, or medical malpractice claims. For the recipient of settlement payments, who are often referred to as annuitants, the fixed payment schedule has many benefits but also has several drawbacks. Once the individual agrees to structured settlement payment arrangement or annuity, he or she is locked into it in terms of the schedule - they cannot alter the structured settlement payment structure in any way. While the structured settlement may work in the short-term, the illiquidity of the settlement payment schedule provides no flexibility as his or her financial needs change over time.

Over time several companies have come into existence that will provide structured settlement payment recipients with a large lump sum in exchange for some or all of the annuity payments. Essentially, the recipient of the settlement, who has an immediate need comes to an agreement with these companies to accept a lump sum payment today instead of waiting years and years for the payments to become due under the payment plan. The reasons a person wants to sell some or all of their annuity payments for immediate cash vary greatly.

Many of these companies that originate "structured settlement transactions" are brokers that match the settlement recipient with an investor. In recent times, private individual investors, as opposed to institutional investors, have shown more and more interest in acquiring these types of payments in this secondary market. In many cases it is an attractive opportunity as a structured settlement acquired from the secondary market can pay a better return than a similar annuity.

While purchasing settlement payments in the secondary market can be desirable for an investor, due diligence is required. From the perspective of investors, the critically unique aspect to contemplate in acquiring this type of investment in the secondary market is the quality of the brokering company's underwriting and its compliance with the various applicable federal and state laws. Compliance with the legal framework in this area is essential in order to ensure that the investment pays in the future, so the brokering company's experience with these types of transactions becomes very important. Ensure that the brokering company has experience with the state's laws since they do vary from state to state.

The team at TMT Capital Solutions can walk you through the entire process and make sure you are comfortable with the product. Our acquisition of structured settlement payment streams is done pursuant to stringent underwriting mandates and with strict compliance with the law.

How to Make Your Own Will

Heirs, usually consisting of family members and close friends, will divide up the assets of someone after death. Failure to complete your will before death could result in your possessions going to the government, so it's important to make a will, even if you expect to be living for a long time. It's never too early to be prepared for the future. If you want the protection a will provides, but don't want to pay to have an attorney write it, you can learn to do it yourself. These are the steps to follow when creating a will:

1) You start by putting the date and your whole name and mailing address on the top of the page. Writing in blue pen is helpful because then the original and photocopies will not be confused.

2) Then, write that you are of sound mental health and contractual capacity.

3) Your civil information should be included - whether you have a significant other, live alone, divorced, or not living with your spouse. After selecting your marital status, please elaborate by stating how long you've been married or divorced.

4) Have you revoked any other wills you may have made before this one? You need them to fulfill this will's request, and disregard the former will from the last 20 years.

5) An executor should be appointed as a next step. The executor is in charge of carrying out the wishes expressed in your will. Should your executor predecease you, you want to have a back up appointed. In case you intend to reward the executor, here is where to include it. Name your executor as the one who is to arrange your funeral and pay any outstanding expenses such as debts or taxes. Dividing up your assets now can avoid the hassle of it later.

6) Here you get to have loads of fun, figuring out the division of assets. You can either divide your total assets into percentages to assign to certain individuals, or you can specify which assets you would like to leave for certain individuals. An example would be, "85% of my possessions goes to my mate, Bernese Johnson," or "The house I own belongs to my mate, Bernese Johnson." My son, George Johnson, I leave to you my savings fund. When your time comes, you can also leave your assets to your children. They should receive it only upon turning 18 or 21. Be careful to include all your assets on your list, including any company shares, savings accounts, stocks, cash, bonds, real estate, businesses, etc.

7) Please check that you initial every paper and sign on the bottom line of the last paper, close to the date. A witness is needed to sign plus make a note of the date.

Top 10 Secondary Market Annuity Facts

Traditional asset management strategies focus on a balanced blend of stocks and bonds. Individual managers have various strategies for managing each portion, but students of history learned over 100 years ago in the Industrial Revolution that specialization was the key to unlocking productivity and performance. Why entrust your retirement income needs to a generalist? Why not engage a specialist, an expert in the unique challenge of generating secure, guaranteed INCOME?

Asset accumulation is very different than income maximization....

Secondary Market Annuities offer superior returns and superior safety over the methods of stock-bond generalists. Lets investigate a Secondary Market Annuity to understand why- we'll use the example of a structured settlement for this example.

Our Secondary Market example starts when an injured party wins their case, let's assume it's a worker hurt on the job, and the employer's insurance pays a settlement. Rather than a lump sum, the injured party gets a series of payments over many years, and the paying party settles this case by putting a sum of money with another insurance company that backs the future payments. The loosing party can close its books and move on, and the winner has its award.

Now let's assume the winning party decides they want cash now instead of future payments. In most cases, this change to the court ordered settlement requires a new court hearing, where the court supervises the process to ensure fairness to all parties. The winning party- called the annuitant- sells the future payment stream in this court process at a discounted present value to a factoring company.

A well known factoring company is J.G. Wentworth, who uses direct -to-consumer ads offering cash now for future payments, through aggressive internet, TC, and radio ads with catchy jingles.

The factoring company exchanges cash now for the future income stream, and due to the discounted purchase price, makes a decent profit in the trade. Most factoring companies then bundle or securitize these financial assets into portfolios and re-sell in large blocks to banks, insurance companies, and investors. Securitized portfolios offer high credit, high quality cash flows and are consequently in high demand.

So What? How is This of Value to You?

Court supervised, cash backed payment contracts with highly rated insurance companies are high quality assets in high demand. But in recent years individual investors have obtained access to this marketplace and actively snap up these high yield, low risk, guaranteed payments from the likes of Met Life, New York Life, Genworth, and other highly rated insurance companies

Financially astute investors can benefit with Secondary Market Annuities in the fixed income or low risk portion of their portfolio precisely because of the low risk nature of these assets. Rather than buying corporate or Treasury bonds, or fixed annuities, with low yields, they can obtain the same safety with much higher yield on the Secondary Market.

Let's look at the Top 10 Secondary Market Annuity (SMA) Facts:

1) Unlike many other kinds of annuities, Secondary Market Annuity payments are contractual guarantees, not projections based on future performance.

2) SMA's offer higher than average returns on a fixed income portion of your portfolio.

3) SMA transactions are largely unknown to the general public and are not readily available to individual buyers.

4) SMA payments are very secure and come from the highest rated life insurance companies. Some are also available from State Lottery commission.

5) Secondary Market Annuities do not have hidden administrative fees.

6) Secondary Market Annuities are contracts not tied to your lifespan, and can thus offer payments to your heirs after you pass on.

7) All SMA's require a court approval prior to transfer to you, and are scrutinized in the process.

8) Secondary Market Annuity payments are paid directly to you, not to an intermediary. The payments are direct obligations of a U.S.A. based insurance company. Credit ratings of these companies range from A.A.A to A by Standard and Poor's.

9) SMA's can be bought with before or after-tax dollars.

10) Secondary Market Annuities are denominated in U.S. Dollars, therefore foreign buyers should be aware of currency and exchange risks.

A Structured Settlement

Process for Receiving the Money

After a few years of payments a structured settlement company may come into the picture. They will suggest an agent who will buy the structured settlement contract at a lower price than the settlement value. The complainant will need to do this in order to acquire a lump sum of money. If the complainant neglects this matter, the company may refrain from repayments as stated in some settlement contracts. Therefore, the complainant must read the contract to make sure they are following rules set down.

The structured settlement company will be happy if you follow their structured settlement contract. Even though, the contract may be sold for a lower price but you could still gain a large amount of money if you choose to be paid in a lump sum of money. On the other hand, you can also search for a note buyer to fix the issue related to your contract. The note buyer earns their profit for a longer period gaining interest on the contract but they can easily sell a note. They can also reinvest in the future.

Five Things to Consider in Selling your Settlement

Since you already know the process for receiving the money, its time to know the things that are needed to be considered when engaging in structured settlements. Benefits and disadvantages are the first things to be considered when selling.

1. Legal Restrictions

This is the nature of some settlements contracts, so read carefully and have a legal representative look it over too. Just like a legal document, there are legal restrictions that need to be followed by both parties.

2. Contractual Restrictions

Aside from having, legal restrictions some contracts will be valid only for one client. Therefore, it would be difficult to resell them once the contract is over.

3. Tax Considerations

He or she may pay less tax or even be tax-free totally. He or she may pay less tax or be tax-free when he or she decides to be paid by installments. On the other hand, if he or she decides to go for a lump sum of money, he or she may be subject to tax liability since he or she will receive a large amount of money.

4. Low Offers

Since you will receive a contract or a note, you need to seek for low offers. To seek low offers, you can compare prices and choose the lowest price.

5. Seek a Lawyer or an Accountant

When reviewing documents you need to find a good lawyer that specializes in these types of contract. By letting a lawyer review the contract, you will be rest assured that your rights are being protected in case of future complications. If you needed the sale of your structured settlement to be approve in the court, your lawyer can lend you a hand in the process. On the other hand, an accountant can help you decide between the options of installments or a of lump sum of money. They can help you setting up a reasonable price of the structured settlements.

Benefits And Safeguards Provided By The Structured Settlement Protection Act

The Structured Settlement Protection Act states that certain transactions regarding the sale of a structured settlement need the approval of a judge in your state's court before they can be completed. It is also stipulated that the responsible insurance company making the payments need to be part of the process prior to the sale.

Prior to the inception of the protection act it was not necessary that insurance companies be informed of change of ownership of a structured settlement, and quite often did not know of the change until after the fact.

So, whether you are comfortable with the payment setup of your settlement or are considering selling your annuity, it would be in your best interests to learn more about the protection act.

Requirements of the Protection Act

The act now requires that any interested parties be notified of a sale or partial sale of a structured settlement twenty days prior to any court hearing seeking approval for any changes.

Prior review by a judge is required before any sale takes place. This is done to insure that the sale is in the best interest of the person or client receiving the annuity.

This requirement exists for the protection of the client. Before the implementation of the act there were companies that unscrupulously took advantage of many people who wanted to sell their settlements by offering paltry and unfair amounts to purchase their annuities and settlements.

Many clients, either because of the lure of a large lump sum of money or lack of knowledge on the subject, fell prey to these tactics.

Benefits and Safeguards of the Protection Act

The client selling the settlement must disclose the arrangements associated with the sale along with their personal financial affidavit describing their current financial status. This usually must be submitted three days prior to any finalization of the sale or contract signing.

It is now the responsibility of the buyer of the settlement or annuity to disclose all information relative to the purchase and sale of the annuity or settlement, not the insurance company, issuer or client.

A company that is proposing or trying to buy your settlement must also advise you to seek legal advice before proceeding with sale. This also must be given in writing, and must be done before any information can be presented in court,

Once all documents have been signed, the seller or client still has three days to change their mind about the decision to sell.

The Structured Settlement Protection Act assures that people can sell their annuities and structured settlement payments in a fair and just manner without the fear of being victimized by dishonest companies. Visit the Structured Settlement website for more information about your structured settlement and structured settlement companies.

Choosing a Buyer of Structured Settlement Payments

Are the biggest names or buyer of structured settlement payments the best? It certainly could be the case, depending on your circumstances. Or, are the other big or mid-size brokers better than the ones we all know and hear of?

Let's deal with facts!

Fact 1: The biggest companies have the bigger overhead

Fact 2: The bigger companies have a bigger staff (could be good, could be bad)

Fact 3. It's fact, you wouldn't want a buyer of structured settlement payments who isn't smart enough to keep overhead down and money in your pocket.

Now do the accounting!

1. The advertisements and budget is coming out of the seller of structured settlement payments pocket, yours!

2. Does it add up?

Choosing a buyer of structured settlement payment company is indeed a personal decision. Use your own intuition. If it's the bigger company for you then great! If it's the other major leaders or buyer of structured settlement payment companies that interest you, then great. The main thing, your biggest priority, should be getting the best offer for your structured payments or annuities.

If you are in solid need of funding, and have been considering selling off your monthly payments, do your research. The money is yours, so remember, you deserve to get the largest quote, not settling for less.

Make sure you feel comfortable that you are not being pressured or sold too quickly. Make sure that you will choose the best buyer of structured settlement payments, by checking the reputation of the companies you are getting quotes from.

Once you get your quotes, talk to each of the buyers. Use your own intuition to select the best buyer. Add up all the statistics from your own personal research, the facts, and accounting so that in the end you will be sure you are making sure you are getting the most amount money instead of less.

It just makes sense to add it all up. This could be the one and only time in your life that you can get a large cash lump sum settlement. You could be in financial debt up to your ears, and need a way out. Like everyone we have bills to pay and need to be smart with our money.

Or, you may want your money now instead of later, for investment or a new business idea. Choosing the right buyer of structured settlement payments is a very important decision, it's also a very personal one.

Structured Sale Annuity Tax Minimization Strategies

Assuming asset appreciation, capital gains tax will be due when selling a property, business, or business practice in the year of the sale. In most cases, the taxable gains will amount to a substantial sum of money owed by the seller in a short period of time.

For those who are selling a significantly appreciated asset (business interest or property), the federal tax liability can be very burdensome. A structured sale annuity helps to spread the capital gains over several years so as to alleviate a taxable windfall while also providing reliable payments and income to the seller.

How Does a Structured Sale Annuity Work?

The seller and the buyer agree upon a purchase price for the asset. As oppose to the buyer (or bank) paying this amount lump sum to the seller, the funds are pledged to an assignment company. This initial act avoids constructive receipt for the seller and satisfies current I.R.S. rules and regulations.

The assignment company then purchases an annuity with the proceeds from the sale. The annuity is structured in a agreed upon matter to make future payments to the seller. The seller has several options when structuring the annuity and can tailor the payment stream to his needs.

The buyer is released from any future monetary obligation as he has made full payment for the asset to the assignment company. In this way, the seller will not have to rely on the ability of the buyer to make future installment payments.

In order to qualify as an installment sale, the buyer must take at least one payment in the first year. Thus, the payment stream cannot be deferred for longer than 12 months. All funds do not need to be assigned to the annuity however. In some cases, a portion of the sale is taken lump sum and another portion is structured over time.

There are three parts to a structured sale annuity:

1. The non-taxable recovery of the asset (cost basis)
2. The gain or profit from the sale (appreciation)
3. Earned interest from the annuity account

The future annuity payments will consist of an equal portion of each part. The seller will receive a portion of the cost basis, asset appreciation, and interest each year (or month) for the duration of his structured agreement. Those who are looking to establish periodic income payments during retirement can benefit from this arrangement after selling a business, property, or practice.

Why Use An Annuity Account?

Annuities are valuable based on their guarantees and safety. In times of market turmoil, a periodic annuity payment from a highly rated, well capitalized insurance company will provide the peace of mind, safety and regular income needed by most investors.

There are very few companies underwriting structured sale annuity accounts, but those that do are some of the largest and safest in the world. The investment interest gains provided by these accounts will vary depending on market conditions, but they will always have a fair minimum guarantee.

The periodic annuity payments are guaranteed. Should the seller pass away prematurely, then the payments will continue to a named beneficiary as established by the annuity contract.

Tax Advantages of a Structured Sale

A structured sale annuity provides the advantage of simply spreading out capital gains over several years. As oppose to writing a large check to the government over one or two years, those gains will be held in the annuity and earn substantial interest over time. That interest is then payable to the seller each year.

Should the seller have future capital losses, then they could be written off against the portion of capital gains that are withdrawn from the annuity each year. Future non-qualified stock trades or property sales for losses could count against the capital gains distributions from the structured annuity.

In summary, an installment sale will not be appropriate for every situation, but for those with significant asset appreciation who are looking to spread out their capital gains while also providing a guaranteed stream of income will find that a structured annuity sale can be a very valuable investment plan.

A.M. Hyers has been working in the insurance and investment industry for over fourteen years. He owns and operates Hyers and Associates, Inc. an independent insurance and annuity agency doing business across the U.S.

His agency specializes in retirement planning, wealth transfer, and tax minimization strategies. They work extensively with structured annuity and life insurance policies for the purpose of transferring and maintaining wealth.

Lump Sum Benefits With Structured Settlements

If you are due to start receiving structured settlement payments over a long period of time, chances are you would rather be paid out all at once. In a lot of cases, a person who receives a settlement offer in a claims case or personal injury suit is banking on the money awarded in court to offset their medical, legal, and sometimes mental health bills. A structured settlement disbursement simply is not an option for most recipients that are under the gun to cover such expensive costs immediately after they've gone through an expensive legal battle for their winnings.

In these cases, there are great options to sell structured settlement awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. When selling your structured settlement, the first thing to realize is that you will only receive most of your settlement offer in a lump sum payout. The buyer will charge the settlement recipient a fee for exchanging their money with your disbursement (which may last months or years), meaning they will need to offset the cost of this delayed investment by holding onto some of the funds you've been awarded.

Long Term Security, With No Surprises.

To recipient, who may buy the it is the long term income source that may not bring any kind of surprises to you. Payments may come every month during running time of a plan. An only risk is, that company that needs to do payments may become bankrupt. Profit depends on time, while you may buy the structured settlement. As settlements are the investment instruments like other, general economic situation may affect greatly on prices. In case, you can buy that as bargain, then it is one good deal.

How Payments Are Calculated?

As said, are totally based on court decision and in case, reason is compensating a few damage that someone has caused to another, target is paying for future injury care. Payer is generally the insurance company. In these cases, there are great options to sell awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. In these cases, there are great options to sell awards to financial institutions and insurance companies that deal with lump sum payouts for settlements. When selling your structured settlement, the first thing to realize is that you will only receive most of your settlement offer in a lump sum payout. The buyer will charge the settlement recipient a fee for exchanging their money with your disbursement (which may last months or years), meaning they will need to offset the cost of this delayed investment by holding onto some of the funds you've been awarded.

Settlements Are Tax Free.

If buying price is important element, then another one is a fact, that settlements are completely tax free. In case, that settlements form an only income for a few person, this person is the tax free person.

Selling Structured Settlement Payments - What Is The Process?

Your bills are piling up and you don't know where the money is going to come from. You have settlement money flowing in, but it's just not enough each month to cover your family's needs. You decide that now is the time to get a lump sum of cash for your future structured settlement payments. Now what? Educating yourself on the process of selling your structured settlement will position you in the best possible way to maximize your offers.

The first step in the process is to determine if selling your structured settlement is the best solution for your situation. Have you exhausted the more traditional sources of raising cash? If your answer is yes, the next step is to start getting offers.

You next need to gather the important information regarding your structured settlement. This will be needed to get offers. The most important information is the name of the insurance company, the amount of each payment you are set to received, and the date of each payment. This information is required for the calculation each company will perform to give you an offer. It is also helpful to start gathering your actual structured settlement agreement from the court settlement, the actual insurance contract from the carrier and the benefits letter. The benefits letter will list in detail every payment you are set to receive and on what date it will be paid.

There are really two major ways to find the factoring companies that will purchase your payments. The first is to look for the television advertisements that seem to run constantly on some of the major cable news channels. These are definitely the big players in the business of buying structured settlements. One thing to remember is that those television ads can be expensive. You have to wonder how that can affect the offers they are willing to make. The other major resource is of course the internet. Doing a quick search on Google will show you just how vast the number of companies that are out there. The internet is a lower cost method for the factoring companies to reach potential clients wanting to sell their payments. It is also an efficient and effective way for you to quickly get multiple offers for your settlement. The lower overhead of the web-based companies should allow them to be more competitive with their offers.

Once you find an acceptable offer, that company will usually send you an initial application along with a list of required documents. Again, you will need to provide your settlement agreement, benefits letter, a copy of your annuity contract, two photo ID's, possibly a qualified assignment form, and an order for minors claim if you were a minor when your settlement occurred. The faster you can turn this information around, the faster the process from start to finish.

The company buying your settlement will perform a background check looking for any outstanding liens or judgements that may restrict your ability sell. Once your information is reviewed and found complete, the factoring company will send you closing documents to sell your structured settlement. Once the closing documents are received and reviewed, then the company buying your settlement will now schedule a court date to complete the transfer. Every state regulates the sale of structured settlement payments. It is necessary on every transaction that a judge review the transaction and approve. This is for your protection as well as the company buying the payments.

Once the court approves the transfer, a copy of the order is sent to the insurance carrier. Once the carrier acknowledges the transfer of the settlement payment, the company purchasing your structured settlement payment will wire or mail your money. This is just a brief overview of the process, but should be enough to get you off to a good start.

What Are the Pros and Cons of Structured Settlements?

What is a Structured Settlement?

Normally, when someone wins a judgment or settles their lawsuit the defendant is obligated to pay you the settlement amount in one lump sum. For example, if you contracted a disease as a result of using a contaminated drug and won a judgment against the pharmaceutical company, you might settle out of court for a million dollars. That is one option. Another option is a structured settlement. This would pay you in installments over a specified period of time rather than a lump sum.

The U.S. has put into place structured settlement laws at the federal and state levels. At the federal level these include components of the Internal Revenue Code. Those at the state level include structured settlement laws that deal with periodic payment of judgment statutes. These settlements must take Medicare and Medicaid laws and regulations into consideration. Settlements of this type are endorsed by most of the country's biggest disability rights groups, including the National Organization on Disability and the American Association of People with Disabilities.

Installment payments are able to be structured in a such a way to meet your needs and protect you against the effects of inflation. They vary from types with a simple yearly payment to more complicated arrangements that consist of an initial lump sum payment, deferred payments, monthly indexed installments, and certain provisions to provide for the death or future care of the insured.

Normally, the defendant purchases an annuity for a specified dollar amount paid up front. The annuity allows for scheduled income payments on a regular basis as determined by you and your attorney based upon the conditions of the structured settlement.

What are the benefits of a structured settlement?

One important benefit is the ability to avoid taxes. Properly set up, a structured settlement may reduce significantly the plaintiff's tax burden as an outcome of the settlement, and may even be tax-free in some cases.

The structure can also protect you from have the settlement funds dwindle away, when they are used to pay for needs or future care. Occasionally a settlement can be structured to provide protection from yourself. Some people are just not good with finances, or cannot say "no" to family members who want to share in the settlement. If you are not disciplined with your spending, a legally agreed structure may help you ensure the money is not spent quickly, but doled out over a period of time.

Minors may find a settlement of this type to be beneficial as well, since this type of settlement provides for certain expenses during their youth and another disbursement for college tuition, and more disbursements during adulthood. If you are injured or have special needs that are long-term in nature, you may benefit from periodic disbursements to pay for medical equipment or specialized vehicles for mobility.

What are the potential disadvantages of a structured settlement?

For one thing, once you agree to a settlement, you are bound by its terms. You cannot change it at a later time. Therefore, it's crucial to be represented by a good attorney who will assist you in negotiating a settlement that is tailor made to fit your individual needs, such as inflation protection. If your life expectancy is shorter, you may prefer a settlement that provides a guaranteed minimum payment, even if you pass away before the guaranteed period expires. This can provide protection for your family and beneficiaries from being left bereft of income.

One other potential disadvantage of a structured settlement is that unforseen economic changes may make the annuity payments too small. Or the annuity may be placed with brokers who lack enough protection for insolvency.

Properly set up, a settlement structured to meet your needs can be very effective. However, you need to ensure that you are adequately informed before acting. Nothing can replace the good advice of a competent attorney or financial advisor.

Why Choose A Structured Settlement

This is of course a brief explanation and you can always visit the Internal Revenue Service website for more information. One of the hard facts about structured settlements, as with so many things, is that they are primarily about taxes.

Structured Settlement Tax Benefits

If you were injured in an automobile accident and received a settlement of $250,000 from either the other person involved in the accident or their insurance company, the settlement is tax-free. However, if you then decide to invest that $250,000, any earnings from that investment are taxable.

On the other hand, if you opt for a structured settlement in lieu of the $250,000 in cash, you will then receive the money over whatever period of time that you decide, and those payments will be tax-free. This will convert your after tax earnings into a return that is totally tax-free.

Payments Over Time vs. Lump Sum

Although settlement claims are won in the courtroom, most are usually settled out of court. The most commonplace scenario is that the insurance company or obligated party will pay you the amount agreed upon. This payment can come in a one time payment also known as a lump sum, or you can elect to receive installment payments over time. Depending upon your circumstances, a structured settlement can be a wise choice that enables you to maintain a constant income stream over a designated period of time.

The payment plan can and should be your decision. It can be simple annual payments or you can receive a certain amount as a down payment with the remainder paid to you as monthly payments.

There are many reasons for people to opt for a structured settlement. The most obvious reason is to set up a source of continuous income, and secondly the tax advantages associated with this type of plan. A structured settlement will substantially lower the amount of taxes that you will owe.

Does A Structured Payment Plan Make Sense

A structured settlement is a well-organized and much better way to receive any type of money from your claim. However, it is entirely up to you to decide whether a lump sum or payments over time will work best for your situation. That trip around the world or a few months in Hawaii seems like a dream come true, but using your money in a calculated and structured plan that will provide financial security and a steady income for your family really carries a lot of weight.

There are some interesting statistics you should also think about. It has been shown that about 30% of the people who have chosen to receive their settlement as a lump-sum instead of a structured payment plan have spent it within three to four months, and more than 80% have spent their entire settlement within the first five years.

A Structured Settlement

Process for Receiving the Money

After a few years of payments a structured settlement company may come into the picture. They will suggest an agent who will buy the structured settlement contract at a lower price than the settlement value. The complainant will need to do this in order to acquire a lump sum of money. If the complainant neglects this matter, the company may refrain from repayments as stated in some settlement contracts. Therefore, the complainant must read the contract to make sure they are following rules set down.

The structured settlement company will be happy if you follow their structured settlement contract. Even though, the contract may be sold for a lower price but you could still gain a large amount of money if you choose to be paid in a lump sum of money. On the other hand, you can also search for a note buyer to fix the issue related to your contract. The note buyer earns their profit for a longer period gaining interest on the contract but they can easily sell a note. They can also reinvest in the future.

Five Things to Consider in Selling your Settlement

Since you already know the process for receiving the money, its time to know the things that are needed to be considered when engaging in structured settlements. Benefits and disadvantages are the first things to be considered when selling.

1. Legal Restrictions

This is the nature of some settlements contracts, so read carefully and have a legal representative look it over too. Just like a legal document, there are legal restrictions that need to be followed by both parties.

2. Contractual Restrictions

Aside from having, legal restrictions some contracts will be valid only for one client. Therefore, it would be difficult to resell them once the contract is over.

3. Tax Considerations

He or she may pay less tax or even be tax-free totally. He or she may pay less tax or be tax-free when he or she decides to be paid by installments. On the other hand, if he or she decides to go for a lump sum of money, he or she may be subject to tax liability since he or she will receive a large amount of money.

4. Low Offers

Since you will receive a contract or a note, you need to seek for low offers. To seek low offers, you can compare prices and choose the lowest price.

5. Seek a Lawyer or an Accountant

When reviewing documents you need to find a good lawyer that specializes in these types of contract. By letting a lawyer review the contract, you will be rest assured that your rights are being protected in case of future complications. If you needed the sale of your structured settlement to be approve in the court, your lawyer can lend you a hand in the process. On the other hand, an accountant can help you decide between the options of installments or a of lump sum of money. They can help you setting up a reasonable price of the structured settlements.

Benefits And Safeguards Provided By The Structured Settlement Protection Act

The Structured Settlement Protection Act states that certain transactions regarding the sale of a structured settlement need the approval of a judge in your state's court before they can be completed. It is also stipulated that the responsible insurance company making the payments need to be part of the process prior to the sale.

Prior to the inception of the protection act it was not necessary that insurance companies be informed of change of ownership of a structured settlement, and quite often did not know of the change until after the fact.

So, whether you are comfortable with the payment setup of your settlement or are considering selling your annuity, it would be in your best interests to learn more about the protection act.

Requirements of the Protection Act

The act now requires that any interested parties be notified of a sale or partial sale of a structured settlement twenty days prior to any court hearing seeking approval for any changes.

Prior review by a judge is required before any sale takes place. This is done to insure that the sale is in the best interest of the person or client receiving the annuity.

This requirement exists for the protection of the client. Before the implementation of the act there were companies that unscrupulously took advantage of many people who wanted to sell their settlements by offering paltry and unfair amounts to purchase their annuities and settlements.

Many clients, either because of the lure of a large lump sum of money or lack of knowledge on the subject, fell prey to these tactics.

Benefits and Safeguards of the Protection Act

The client selling the settlement must disclose the arrangements associated with the sale along with their personal financial affidavit describing their current financial status. This usually must be submitted three days prior to any finalization of the sale or contract signing.

It is now the responsibility of the buyer of the settlement or annuity to disclose all information relative to the purchase and sale of the annuity or settlement, not the insurance company, issuer or client.

A company that is proposing or trying to buy your settlement must also advise you to seek legal advice before proceeding with sale. This also must be given in writing, and must be done before any information can be presented in court,

Once all documents have been signed, the seller or client still has three days to change their mind about the decision to sell.

Top 10 Secondary Market Annuity Facts

Traditional asset management strategies focus on a balanced blend of stocks and bonds. Individual managers have various strategies for managing each portion, but students of history learned over 100 years ago in the Industrial Revolution that specialization was the key to unlocking productivity and performance. Why entrust your retirement income needs to a generalist? Why not engage a specialist, an expert in the unique challenge of generating secure, guaranteed INCOME?

Asset accumulation is very different than income maximization....

Secondary Market Annuities offer superior returns and superior safety over the methods of stock-bond generalists. Lets investigate a Secondary Market Annuity to understand why- we'll use the example of a structured settlement for this example.

Our Secondary Market example starts when an injured party wins their case, let's assume it's a worker hurt on the job, and the employer's insurance pays a settlement. Rather than a lump sum, the injured party gets a series of payments over many years, and the paying party settles this case by putting a sum of money with another insurance company that backs the future payments. The loosing party can close its books and move on, and the winner has its award.

Now let's assume the winning party decides they want cash now instead of future payments. In most cases, this change to the court ordered settlement requires a new court hearing, where the court supervises the process to ensure fairness to all parties. The winning party- called the annuitant- sells the future payment stream in this court process at a discounted present value to a factoring company.

A well known factoring company is J.G. Wentworth, who uses direct -to-consumer ads offering cash now for future payments, through aggressive internet, TC, and radio ads with catchy jingles.

The factoring company exchanges cash now for the future income stream, and due to the discounted purchase price, makes a decent profit in the trade. Most factoring companies then bundle or securitize these financial assets into portfolios and re-sell in large blocks to banks, insurance companies, and investors. Securitized portfolios offer high credit, high quality cash flows and are consequently in high demand.

So What? How is This of Value to You?

Court supervised, cash backed payment contracts with highly rated insurance companies are high quality assets in high demand. But in recent years individual investors have obtained access to this marketplace and actively snap up these high yield, low risk, guaranteed payments from the likes of Met Life, New York Life, Genworth, and other highly rated insurance companies

Financially astute investors can benefit with Secondary Market Annuities in the fixed income or low risk portion of their portfolio precisely because of the low risk nature of these assets. Rather than buying corporate or Treasury bonds, or fixed annuities, with low yields, they can obtain the same safety with much higher yield on the Secondary Market.

Let's look at the Top 10 Secondary Market Annuity (SMA) Facts:

1) Unlike many other kinds of annuities, Secondary Market Annuity payments are contractual guarantees, not projections based on future performance.

2) SMA's offer higher than average returns on a fixed income portion of your portfolio.

3) SMA transactions are largely unknown to the general public and are not readily available to individual buyers.

4) SMA payments are very secure and come from the highest rated life insurance companies. Some are also available from State Lottery commission.

5) Secondary Market Annuities do not have hidden administrative fees.

6) Secondary Market Annuities are contracts not tied to your lifespan, and can thus offer payments to your heirs after you pass on.

7) All SMA's require a court approval prior to transfer to you, and are scrutinized in the process.

8) Secondary Market Annuity payments are paid directly to you, not to an intermediary. The payments are direct obligations of a U.S.A. based insurance company. Credit ratings of these companies range from A.A.A to A by Standard and Poor's.

9) SMA's can be bought with before or after-tax dollars.

10) Secondary Market Annuities are denominated in U.S. Dollars, therefore foreign buyers should be aware of currency and exchange risks.