People who possess a structured settlement, typically the consequence of an injury or winning a suit, can sell that settlement that is structured and never needing to wait for the resolution payout to get cash up front. As it is not ever a good idea to sell a structured settlement or annuity, particularly of it is your prime source of income, however, people should be attentive.
Because Annuity Transfers does not publish information for fees and their rates, and because every structured settlement or annuity are different, you would have to contact them if you want to learn more details regarding your structured settlement or annuity.
Another important thing to notice for individuals considering selling their structured settlement or annuity is that you will not receive the total amount of your settlement. It is because structured settlement purchasers buy your structured settlement at what’s known as a discount rate. This works the similarly way as an interest valuation on a mortgage in that it is the profit margin the business is making. The discount rate is how the business generates a profit. Also, it can fluctuate based on your scenario, the company, and also the manner that your settlement is structured.
Annuity Transfers Ltd. Maybe you have an old annuity that’s renewing at a low rate, or perhaps you like the further “Hybrid” Annuities with the Income Riders, including your past annuity does not have that characteristic.
You can do what’s called a 1035 Tax-Free Exchange.
This implies you can transfer to another from one annuity company, and that you don’t need to pay taxes.
The thing to see out for though is to ensure there aren’t any surrender charges on your existing annuity. Whether there are any remaining submission fees, if it’s worth transferring and paying the penalty, or just keeping it where it’s at you have to think about.
Then you definitely can do the 1035 exchange at any time, with no fees, if you are out of your surrender charge period.
In the end, Annuity Transfers looks to be a taken, Texas-based company. Their website is quite illustrative of the steps you’ll have to take to sell your structured settlement. And additionally, includes a useful FAQ section where it’s possible to learn more about matters like a discount rate so that one can be certain you have a complete understanding of the consequences of and process for selling your structured settlement or annuity.