Why can't I get an advance on my structured settlement annuity through the annuity's insurance company?

If your annuity was issued under a structured settlement resulting from a litigation claim, advancing payments is not allowed under the IRS code 130 (c). However, assigning your payments is legal. Those payments are considered your personal property while the annuity itself is not. After July 2002, every transfer of payment rights will require a court order to avoid a penalty under HR 2884.

How can I sell my structured settlement payments?

  • By entering into a purchase and sale agreement with a buyer facilitated by Ready Money Capital;
  • By complying with its underwriting process and ultimately appearing before a judge who will decide if the transaction is in compliance with his or her state's transfer statute and is in the best interest of the seller.

The court then enters an order requiring the insurance company to send the specified future payments to the buyer. The seller (you) would then receive your lump-sum cash payment.

Can I sell only a portion of the payments I am due to receive?

Yes you can. In fact, we encourage you to only sell enough of the payments necessary to meet your specific financial need.

How long does the process usually take?

On average, the complete process usually takes anywhere from 4 weeks to 4 months, depending largely upon your local court calendar. We will work with you each step of the way to make sure that the process goes as smoothly and uncomplicated as possible.

What are the tax implications of receiving a lump-sum payment today in lieu of future income from my deferred payments?

On June 10, 1999, the IRS issued Private Letter Ruling 119273-97, which confirmed that an individual's sale of their structured settlement payments would not create a taxable transaction.

What about the new federal law governing the sale of structured settlement payments?

In general, the bill imposes an excise tax on anyone who acquires structured settlement payments unless said structured settlement payments are acquired pursuant to a "qualified order." A "qualified order" means a court order approving a transfer of structured settlement payments. Ready Money Capital has extensive knowledge of all state and federal laws governing these transactions and can provide expert advice and support to you regarding the possible sale of your payments.



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