Structured Settlement

Sell Annuity: When Not To Sell

Sometimes it can be tempting to sell your annuity. You want the money now, not in installments or periodic payouts. But there are some times when being patient can really pay off and there are some times when you should not sell your annuity.

The judge or jury orders you a structured settlement for a reason. There is typically a method behind why they want you to have payments over time instead of all in one lump sum. Sometimes it is part of an agreement with the other party such as when they are at fault for a personal injury claim but it is not possible for them to pay you the judgment in a lump sum.

While there are many companies out there that will purchase your future payments, there are some times when you should not cash out your annuity. It is typically not the best choice for everyone to do this. Since structured settlements are typically from a court order, you may also have to seek permission before you try to sell your annuity. There are some cases where it will be approved for you but some where it is frowned upon and you should avoid selling your annuity.

You should avoid selling your annuity if you:

• Are under age 18
• Do not have a pressing financial need
• If the annuity is your only source if income (eg.your injury put you out of work, etc)
• If you live in the state of North Carolina
• If you have a lump sum payment more than seven years away
• If you owe a lot in back taxes or child support
• If your monthly payments are less than $100

There are other situations as well but these are some basic guidelines for when selling your annuity would be frowned upon. If you are even considering selling your annuity you will need to seek both legal and financial advice to be sure this is in fact, the best option for you in your case and to be sure that it is even legal.