Family Trust- from the family Trust Company

The delay is caused by the approval procedures that must be followed. However, you probably shouldn’t make decisions like this overnight. Let’s take a closer look at the timeline of receiving cash for structured settlements so you won’t be surprised by a normal delay.

Everyone is probably familiar with JG Wentworth’s television ads that have people shouting, “It’s my money and I need it NOW!” Although that sentiment may be true, you may have to take a little literary license with the word “now.” Transactions to get cash for structured settlements take some time. If everything goes perfectly, you’re probably looking at four to six weeks of waiting for the cash. The more typical timeframe is 60 to 90 days between initial contact and delivery of the check.

To be perfectly honest, the usual holdup is on the governmental side of the equation. Let’s say you contact a firm that provides cash for structured settlement on Day One. With the use of express courier companies and allowing a minimum amount of time for thinking, you can probably hammer out a deal in about a week. But after that, the paperwork is handed off to an attorney who must run it through a series of government mandated hoops.

You see, the structured settlement was originally designed to be in your best interest. The state and federal governments want to make sure the new setup is equally beneficial for your financial affairs. So everything you do with the potential buyer must be approved before it can happen. Waiting for government or court approval usually accounts for 75% to 90% of the wait time.

However, you shouldn’t fault the courts or government agencies. Turning your structured settlement payments into cash is a big move and not one to be taken lightly. You will be giving up guaranteed tax-free income in exchange for a one-time cash payment. Once that’s done, management of your financial affairs will be completely up to you.

As you can see, there’s a good reason why getting cash for structured settlement payments doesn’t happen in a day. Count on anywhere from 30 to 90 days to receive your cash. Most of this time is taken up in the governmental approval process. But you should allow the process to work so that you can be sure this significant decision is the right one to make.

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All of them are encouraging you to break free from the restraints of your structured settlement and seize the opportunity of a lump sum payment.
How do they come up with an amount to offer you? How will their offer compare to simply finishing out the settlement? And why do they do it? The article below takes a look at the answers to these questions.

Companies that buy structured settlements are giving you cash for the future value of your settlement. When they decide how much to offer for your structured settlement, they will assume that tomorrow’s dollar (the money you get in future payments) is worth less than today’s dollar.

So you can’t just add up all of your future payments and expect to receive that in a lump sum. The firm giving you a quote will “discount” the value of those future payments. You will be offered substantially less than the total sum of your payments.

There’s certainly nothing sneaky or illegal about this process. You can see for yourself that the money you have today doesn’t buy as much as it would have years ago.

If the amount of your structured settlement payments are fixed (and most of them are because of tax laws), then any payments you receive in the future will essentially be worth less than they would be today if you could get them today. That’s why your lump sum offer might seem lower than you expect.

Of course, you must realize this: companies that buy structured settlements do so because they will make a profit. If it wasn’t profitable, they wouldn’t do it. So they will pay you a lump sum based on the profit potential of your settlement.

They believe that with the buying power they have on a billion dollars or more of future payments, they will be able to invest wisely and receive a significant return on that investment. Once you receive a cash payment, it will be up to you to accomplish the same thing.

So there you have the basics of buying structured settlements. Firms will calculate an amount that they believe is the future value of your settlement. They’ll make you an offer that may be lower than you want, but probably represents a fair value.

Then the firms will proceed to turn your payments into profit. The picture may not be a happy fairy tale, but at least you’ll know the nitty-gritty details if you’re every ready to sell.

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To account for these unexpected events, state and federal governments have enacted legislation that makes it possible for you to sell future payments of your settlement for cash.

The process of purchasing structured settlement payments begins when you contact a potential buyer. There are dozens of companies that purchase settlements, although most of the business is done by four firms.

You will need to provide them with basic information about your settlement, including the amount of your payments, how often you receive them and how many more you are scheduled to receive.
After applying a little mathematical magic to the information you provide, the firm will call you back with a quote. They will propose an amount that meets their guidelines for making a profit in the deal. This is the point where you would be wise to shop around with several firms. It’s highly likely one company will make a better offer than another. After all, it’s your money, so you should get as much of it as possible.

Once both parties agree, paperwork containing the details of the agreement will be drawn up and signed. At this point, everything will pass to an attorney for submission to the responsible state authority.

State and federal laws require that the agreement be reviewed to confirm it is in your best interest. You will also be offered the opportunity to receive advice from an independent professional.

Now you know the basic process of purchasing structured settlement payments. You start the process, the company jumps in and the court has the final say. Just be sure that you really need the cash and shop around for the best offer. That will save you feelings of regret in the future.

Purchase Structured Insurance Settlements

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If you are curious about why companies are so eager to purchase structured settlements, here’s what you need to know.

Basically, companies purchase settlements because they can make a profit.

If you want to sell your structured settlement, you should consider more than one company. It’s important to make sure that the company you choose is financially sound. Keeping these points in mind could keep you out of a serious bind in the future.

Companies that purchase structured settlements are not providing a public service. They do this because it is profitable for them. They can successfully start and grow a business simply by buying structured settlements and investing the income.

Every structured settlement has a certain value. Many factors go into calculating this value, so it’s not as simple as adding up all the future payments. But if you take cash for a structured settlement, you can count on one thing. The cash you receive will always be less than what you would receive if you waited for all of the payments.

This is where companies make their profit. By paying you a cash sum for your settlement, they are investing a certain amount now in exchange for a guaranteed return on their investment. Because of different business models and the way they value the future value of your structured settlement, the amount of cash offered to purchase structured settlements varies from company to company. That’s why it makes sense to talk with more than one company. In the end, it’s really no different than selling anything else.

You would like to receive the best offer possible. By negotiating with several firms at once, you essentially are getting them to compete for your business. As you consider each company’s offer, it’s your job to determine if the company is financially sound. Once the paperwork is complete, there is no going back. If the company is unable to deliver what they’ve promised, you may have little recourse.

Firms that purchase structured settlements are not necessarily on your side, but they aren’t evil. They are in business to make a profit. So if you have a structured settlement to sell, treat it as a business transaction.

Get the best offer possible and make sure you are dealing with financially stable companies. That’s the only way to ensure that you will be satisfied with the transaction.

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