Sell Structured Settlements

Selling a structured settlement is a process that cannot be rushed. Structured settlements can often represent a significant source of income for people who have been injured and need the money now. Still, there are many aspects to consider before deciding to sell structured settlement payments. During this process, it’s essential to contact your financial advisor and an attorney about the pros and cons of selling your settlement payments and the tax implications. Here are tips on considering if you are to have a structured settlement.

Why sell your structured settlement?

A variety of reasons contribute when you want to sell your structured settlement. For example, if you need to develop a significant amount of money all at once, selling your future payments from the structured settlement could benefit you. However, there are many factors you should consider before making this decision.

How to know when you are equipped to sell your structured settlement?

The decision to sell your structured settlement is complicated, and you should never rush into it. Before you decide, consider the following: Do I need the money now? Have I received any offers that seem reasonable? What are the viable tax implications of selling my structured settlement? If

yes, then it may be worth exploring the option of selling your structured settlement.

What are the tax implications of selling a structured settlement?

The tax entanglement varies, depending on the type of structured settlement being sold. Generally, there are two types of structured settlements: periodic and lump-sum payments. If you have a recurring payment settlement, any income from selling your structured settlement will likely be taxed at ordinary income rates. However, if you have a lump sum payment settlement, the taxes will depend on how much is received in total.

Selling your structured settlements

As you begin selling your structured settlement, it’s essential to know that many factors can affect the amount you end up receiving. Among other things, your age and health will come into play. If you’re older or less healthy than average, you may not be able to work as much as someone else who is healthier and younger. This means they might be able to make more money in a year than you would be able to make in the same period.

In addition, if your settlement is structured with a long-term payout, your payment may have become worthless by the time it comes due. This is because inflation will have consumed away at its value over time. In these circumstances, it may be better for you to take a lump sum so that you have the cash now rather than waiting for years for a smaller payment each month.

You should also consider how much of your settlement will go towards taxes after paying off any liens on it—this could vary from state to state and from person-to-person depending on what type of income tax bracket you fall on.

Still another thing to take into account when structuring settlements is how much interest they offer in comparison to other investments like bonds and stocks. Suppose a company offers a higher interest rate on a structured settlement. In that case, this can influence your decision whether sell or not the settlement early during the payout period.


When ready to sell your structured settlement, keep a few things in mind. But the most important thing is to have a qualified attorney by your side. That way, you can have the surety of not only knowing that all the legal paperwork is in order but that you are getting the best deal possible. And if you’ve ever considered selling your structured settlement, don’t wait!