This legal guide is created for thousands of people that have structured settlement agreements but because of the economy are in need of money now. It covers advantages, disadvantages and tax consequences of selling the annuities.
1
Contact a reputable law firm with experience on the subject
This step is important since there are many entities out there ready to defraud people out of their money. We have helped many individual get their annuities turned into cash during this recession, but we have also heard of many people getting defrauded and the common denominator is that they did not have legal representation.
2
Understand that you must have a valid reason for changing the annuity
Courts are reluctant, even during this times to change structured settlement agreements since it would mean that a reduction of moneys will take place. On the other hand they are very aware that this economy has drastically alter people's life and many need money now rather than later.
3
Understand the tax consequences
For the most part, if you sell your annuity, which most likely is tax deferred, you would acquire a tax liability with the lump sum of money. Talk to your attorney or CPA.
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