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Structured Settlement Transfers
A Structured Settlement Transfer, also known as an “SST”, simply stated, is just an annuity that is offered for sale on the secondary-market. The present owner of the annuity is selling all future payments for a lump sum of cash. An Investor buys these annuity instruments for which he pays-out the lump sum and receives the future income stream.
Many recipients of a structured settlement become frustrated with the inability to raise a lump sum of cash. They may be in financial difficulties, and require a quick influx of cash. Many lottery winners are sorry they took the payments instead of the lump sum. It is a boon for investors who buy these annuities because of the high yields.
Is It A Safe Deal?
When an investor buys one of the structured settlement annuities, his principal risk exposure would be that the financial institution backing the annuity might fail. Fortunately, some of the largest financial institutions are involved in this industry, such giants as: Prudential, Met Life, New York Life, John Hancock, and many others. Anyone holding an annuity backed by one of the large insurers is going to be quite safe.
Where Do These SST’s Come From?
The vast majority of these types of settlements are the result of an individual winning a civil suit due to a Personal-Injury. Others may arise from lottery winners with extended payouts. These annuities are an outstanding method for investors to receive an income that is secure for a set period of time, and even possibly future lump-sum-options.
The court that approved the original structured settlement must be Petitioned to assign all future rights to the investor who is buying the annuity. As an added protection to the investor, a Judge has to approve the transfer. In general, you will have to be at the court hearing. The Judge will review your case, and all of the paperwork, and ask a few questions of you or your attorney.
The hearing normally only will last a short period of time. The majority of structured-settlement sales cases are granted. But, if the Judge feels that it is not in your best interests, he can deny the request.
A Good Investment?
Structured Settlement Transfers is not something that is well known by the general public. The supply of these are limited, and offerings are on weekly reports. In this day and age of economic uncertainties, investors are looking beyond the stock market and real estate investments to find better yields.
A structured Settlement Buyout is a very lucrative move by an investor seeking a secure, high yield cash flow into the future. These annuities are sold at a deep discount so that they will be more attractive to investors, while providing the settlement holder with quick access to a large lump sum of cash for whatever their needs may be.
A structured settlement transfer may be held in a Self-Directed IRA, giving you full control over your assets.