Let us show you an overview of how structured settlement transfers are being done. Read through this and we are hoping this helps you.
Steps Involved with a structured Settlement Transfer
Get Quote
The first step toward getting money from your annuity is to contact a funding company or broker and request a quote. Many places will make you fax documents proving to them that you have an annuity before they will quote you. If you contact a representative they will not force you to fax anything in order to receive a quote. We work with the best funding companies and can usually find our clients the highest cash offers. The amount you receive is based upon the discount rate the company charges you. This rate can be anywhere from 11-25% so it's good to check around. The lower the rate the more money you will receive. The difference in rates could mean thousands of dollars to you.
Sign Contract
Once you agree to the offer presented to you, state disclosures and a contract will be sent to you or sent to the notary that will execute the signing. It will indicate the amount of money you will receive in a lump sum in exchange for your future payments. You will also sign an affidavit which includes the reasons you are requesting a transfer of payment rights be granted. The judge will review this to make sure the transaction is in your best interest so make sure you have good reasons. Also make sure you have your driver's license or state ID on the day of the signing as the notary will check.
Send Documents
At this point you'll need to fax, email or mail in a copy of your annuity contract if you have not done so already. As mentioned previously, many companies will ask for this before offering you a quote. In any event you'll need to show which ever company you choose a copy of the annuity contract. You may be able to just send a one page letter written by the insurance company that issues your annuity that describes the benefits you're entitled to including the dates and amounts of your payments. At some point you will need to send in a copy of your driver's license or state ID and your Social Security card. If you've ever been divorced then a divorce decree will need to be sent as well. This is needed to prove that your ex spouse has no rights to your payments.
Attorney Files Petition
Once the signed contract has been received by the funding company it is reviewed for accuracy and a file is created. Checks will be done to make sure you have no open bankruptcies, past due child support or taxes due to the government. If you have any of the aforementioned issues they will need to be paid off from the funding proceeds. Your file will then be sent to a local attorney who will submit a petition with the appropriate court in your area. Usually the petition will be filed in the county courthouse where you live. Notices are sent to the owner and issuer of your annuity informing them of the upcoming hearing regarding the transfer of payment rights. They have 20 days or so to respond to the notice or object if anything seems out of place. As long as everything is correct they will usually never object to you transferring your payment rights.
Hearing Takes Place
You will be notified as to the time and place of the hearing. Most states will require your attendance although a few do not. Make sure you're dressed appropriately for court and arrive on time. Typically the hearing only lasts just a few minutes. The judge may ask you and or the attorney one or two questions and will then render a decision. Most applications are approved, however denials do happen. Most denials are based on the judge's opinion that the transfer is not in your best interest. He or she may feel that the discount rate you're being charged is too high or may not believe the reasons you listed in the affidavit are adequate enough for you to request a lump sum payout. Occasionally, he or she may ask for more information and issue a continuance, however statistically, most cases are approved.
Funding
Here is the best part. You will be funded after the hearing takes place assuming that the judge grants the order approving the transfer. It could take a few days before you actually receive your money. Most places will either mail you a check or wire the money into your bank account.
