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What you need to know before selling your structured settlement payments. Before the state structured settlement protection statutes and the Victims of Terrorism Relief Act of 2001 which created §5891 of the Internal Revenue Code, any one wanting to sell their settlement payments were on their own. The sale of structured settlement payment rights today requires a Court in your state to review and, if appropriate, make a "qualified order" approving the sale of such payments or a hefty 40% excise tax is applied. The concept of Court approval is intended to protect you from entering into a deal that is not in your best interest.

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Five things NOT to do when Selling your Structured Settlements.Don't sell to the highest bidder.Believing the funding source when they say you will have your money in a couple of weeks. Thinking you have to sell the whole settlement or annuity. Not determining how much you really need.Letting emotions or being desperate control our decisions. Check out the reputation of the structured settlement or annuity purchaser.

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