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The simple answer is that you need a court approval if you’re selling a structured settlement.  For your protection you need a court to approve your buy-out.  The bill was passed by President George W. Bush, to keep unscrupulous buyers from offering terms that were in essence, hurting the seller.  This bill is called,” H.R.2884
Victims of Terrorism Tax Relief Act of 2001″

On January 22,2002, President George W. Bush signed into law a bill regarding structured settlements.  This bill protects individuals who are forced to sell.  When an individual needs or is forced to sell their structured settlement to meet financial obligations this bill makes it a mandatory regulation for these unfortunate individuals to seek court approval first.

This bill was issued for the protection of the individuals selling their structured settlements.

There are also state laws directing how these financial transactions should take place, and how they are to be specifically completed.  At this time thirty states have already passed such laws.  It is now possible for individuals throughout the United States to safely have access to their structured settlement payments.

The bill benefits and more than that, it protects these individuals.  President Bush’s bill makes it very clear that annuity providers will not suffer tax consequences as a result of these transactions.

Insurance companies have long contended that when an individual sells his or her structured settlement payments, the annuity obligors could suffer tax consequences. That concern was the source of very contentious litigation between insurance companies on one side and settlement purchasers and annuitants on the other.

This bill is unambiguous, stating that annuity owners and providers do not now owe nor have they ever owed taxes as a result of these transactions.

The insurance industry, the legal community and members of congress, have work together to protect individuals who need to access their structured annuity payments while acknowledging their right to do so. It is now incumbent upon those states that have not already done so to enact legislation that conforms to this federal law..

We believe the choice as to whether or not to sell a structured settlement payment belongs to the injured party, or their representative – not to inflexible insurance companies.

The settlement purchasing industry was created in answer to the needs of recipients whose situations had changed. Our industry has been providing choices for people who need to gain access to their money now.

The Public will now have the protection of the law when entering into any and all agreements to sell structured settlement payments.

Feel free to contact us anytime for a free no-risk consultation toll-free number (855) E GO CASH or (855) 346- 2274 or use the contact form on this site with any questions.

Citation:  Taken in part from an EXCERPT FROM H.R.2884 DEALING WITH TREATMENT OF CERTAIN STRUCTURED SETTLEMENT PAYMENTS.

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