Guide to Structured Settlement: HOW TO SELL A STRUCTURED SETTLEMENT

         Step 1

      ~Know the terms of the structured settlement~

      Put rather simply, structured settlements are monetary awards which are structured into a payment schedule instead of a lump sum. Most structured settlements are awarded as a result of winning a law suit for either harassment, malpractice, liability or personal injury. Some settlements may be set up as an annuity which pays you a monthly sum for the rest of your life.

      Read and understand your settlement so you're aware of the exact terms. Know when the payments will occur and what the full payout would be at the end of the structured payment term.
  
      Step 2

      ~Understand the transfer terms of your settlement~

      About 2/3 of the US states have set in place laws and requirements regarding structured settlements. It might not be possible for you to sell so do your research before you start dreaming of that new yacht. But, if you can sell....

      Step 3

      ~Decide if you can wait for the structured settlement payout~

      If you can afford to wait for the payout as documented by the court settlement, you're probably better off waiting. Selling your settlement means that you'll realize money NOW but it could be a lot less money than you would have if you were to adhere to the terms of the law settlement. Also, holding onto your structured award could be insurance against being poor in the future!

      Step 4

      ~Conduct internet research on companies that buy structured settlements and shop around~

      There are a multitude of organizations which will buy structured settlements such as stonestreet.com or woodbridgeinvestments.com. Contact a minimum of three companies so you have a fair comparison and are sure you're getting the highest payout.
  
      Step 5

      ~Consider the tax advantages of staying with the structured settlement~

      Frequently, there is a tax benefit to receiving the settlement monthly or even a lump sum every few years. Some annuities are set up so that they are tax-free. If you do choose to sell the settlement though, you could end up paying a boatload in taxes so just beware.
  
      Step 6

      ~Bargain, bargain, bargain~

      Do not take the first amount you're offered for selling your awarded settlement. There's no law that says you can't ask for more. When you get an offer, do not take it without thinking long and hard about the benefits and the negatives of accepting the offer.

Source: How to Sell a Structured Settlement