How do I know that my transaction will be approved by the court?

Honestly, and sincerely, you don’t. A judge must approve it, and we cannot get inside the judge’s head. But, if everything is done correctly, following the law, and if the court respects your sincere need for the funds, it will be approved. Quite often, approval is a function of the level of service you receive from the purchaser. If the purchaser has a great reputation with the court, and provides quality service, your transfer should be approved.

Can I sell some of my payments or a portion of a payment?

Yes and yes. Annuity Transfers will sometimes recommend it. Our job is to make sure that the sale is in your best interest. Sometimes it is a good idea to sell a portion of your monthly payments and retain the remainder as regular income. Sometimes it might be a good idea to sell a portion of a large future lump sum payment and leave the remainder as a retirement cushion, or as insurance for a rainy day. Remember, a court must approve the sale, so think about what makes good sense given your financial situation.

How is the Purchase Price of the sale calculated?

In order to calculate the Present Value of your future payments, we must apply an interest rate against the time it takes for Annuity Transfers to receive your payment. That calculation is the same one that a bank performs when you borrow money. You are charged interest until payment is made. The difference is related to the fact that you are selling your annuity payments, not borrowing against them, and the interest you are paying is part of the payment collected from the insurance company. Interest accrues until the payment is made. The price represents the difference between your payment amount and the interest accrued, so payments due further in the future are worth less than those due sooner. Clear as mud? Give us a call. We are happy to discuss this in more detail over the phone.

What is the Present Value of my structured settlement payments, and how is it calculated?

The Present Value, or PV, is an estimation of what your future payments are worth today, and is equivalent to the Purchase Price. It is literally the “present” value, as opposed to the actual amount of payments that will be made in the future. The PV is less than the actual payment that is due in the future. Present Value excludes the future “growth” of your annuity. Annuities are investments that “grow” based on an interest factor, just like you earn in your savings account at the bank. A dollar today, put in a savings account, might be worth $1.05 next year. The PV of anything represents the reverse calculation, meaning that the PV of a $1.05 due a year from now is $1.00 today. Payments issued through an annuity already include the interest earned. “Present” value refers to the value of the payment minus the growth, as calculated by the purchaser, based on a particular interest rate.

Will I receive a fair price for my structured settlement payments?

From Annuity Transfers, Ltd., the answer is YES! State law requires that we make a fair and reasonable offer, and a judge must agree that we have done so. That does not mean that every potential buyer of your payments will make an offer that will stand up to a judge’s scrutiny. We expect you to know how we determine the price, what the interest rate assumptions are, and why it is fair. Please ask questions. It is our job to answer them.

Why would I sell guaranteed future payments?

Only you know for sure, but it is almost certainly due to a change in your life circumstances. Structured settlement payees are scheduled to receive guaranteed future payments, and that is generally a very good thing. But, a monthly payment, or a single lump sum due far in the future will not buy a house, send someone to school, or eliminate high interest debt today. Structured settlement payment streams due in the future are a financial asset with a value today. As when considering the sale of any valuable financial asset, we believe you should move forward only after careful consideration of all alternatives. Only you know for sure whether taking funds out now, rather than later, is a good idea.

Why are there laws that regulate the sale of future payments?

To make sure that people giving up guaranteed future payments do so for good reasons. If you need your monthly payments in order to buy groceries or to pay rent, you should not sell them. Once you have sold a future payment, it will no longer be there to provide financial security. On the other hand, if you can personally justify the need for selling future payments, then a court should agree with you.

Must I hire an attorney?

A few state laws require that you hire an attorney to review documents and advise you as to whether the sale is a good idea. Most states do not, so that decision is left up to you.  If you feel more comfortable having an attorney review documents and provide advice, you should hire one.  We will let you know exactly what the law in your state requires.

How long does it take to receive my money after court approval?

Provided the judge signs the court order approving the transaction, and we are able to obtain a version of the executed court order, we will fund you within three business days of court approval.

How long does it take to obtain the court order required by state law?

On average, 8-9 weeks. Do not let anyone tell you differently. There is no reason to expect something in 30 days if it takes longer, and it takes longer because each state's legal requirements mandate the steps that must be followed to obtain court approval. If someone tells you otherwise, they are not being completely honest, and that does not make for the start of a good business relationship.

What distinguishes Annuity Transfers from other buyers of structured settlement payments?

Please see the pages in this website entitled Why Choose Annuity Transfers and Why Trust Annuity Transfers. These two pages provide detail related to how we are different from other potential purchasers. There is a difference, and it can affect whether your sale is approved!