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A structured settlement annuity may well be an annuitants biggest asset. The decision to sell some or all of the annuity payments should be carefully considered.

Each structured settlement sale and transfer requires court approval. Each state has a different test that the court must apply to determine if a sale ought to proceed. These tests range from best interest of the annuitant taking into account the welfare and support of the annuitants payees to imminent financial hardship.
In determining whether or not to sell, the annuitant should consider the following:

1. What are the immediate financial needs including family needs?
2. What are the assets and net income available to service these needs?
3. What is the shortfall, if any?
4. Is there a substantial asset (such as a car or house) that needs to be bought in order to maintain or improve the individual or familys standard of living?
5. Are there medical, school, or other expenses currently due or will be due in the future unfunded by current resources?
6. What is the ability to obtain conventional financing and at what rate?
If there is a current cash need, if that need cannot be financed at rates in the range of 7 to 7.5%, and even if you can get financing if it cannot be serviced at current income levels, then it is likely appropriate to sell your structured settlement at this time.
Other circumstances may make it sensible to sell now:
1. You have investment opportunities at rates of return greater than 8% per year.
2. You have inherited the structured settlement and do not need the payment stream.
3. You no longer have the same needs that were present at the time the structured settlement was arranged.

At Sovereign Funding Group we explore all of your financial needs and help you to make the best informed choice. Call us today at 877-836-4661.

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