There are some frequently asked questions about structured settlements that many people have. Here are some of the most common ones to help point you in the right direction. Please note, however, that there may be guidelines that apply that are very specific to a given situation.
Should I sell my structured settlement?
Some people are very happy to receive a monthly, quarterly or annual payment. They just do what they want with the funds. Others, however, have large debts, medical bills, need a house or a vehicle, or want to buy a business. Therefore, it may be worth selling the settlement. You have to look at your own needs. The options you have will also depend on the laws that apply in the state where you live.
Is it legal to sell a structured settlement?
As long as there is no stipulation in the agreement that you cannot sell it, it is legal that you have agreed. However, you want to take your time to read all the details of any proposed offer on the table. You are not obligated to accept any of them. You want to decide who can offer you the best offer if you are going to sell it.
How much do I have to pay to sell my structured settlement?
You should never have to put up any money up front to sell your structured settlement. If you agree to sell it, any processing fees, legal entities, and more must be fully disclosed. They will also be deducted from the settlement amount you get.
Do I have to pay taxes on structured settlement payments?
Taxes are a part of life and apply to all income a household receives. You will need to pay taxes on the amount of the settlement you receive in a given tax year. It’s a good idea to find out how that will affect your tax situation. Since taxes are not deducted, you may owe the IRS money when you file your return. You may want to have a savings account to deposit a portion of your paycheck each month for such purposes.
