Sell A Structured Settlement

Selling Your Structured Settlement: How To Get the Most Value For Your Settlement


Structured settlements are carefully regulated through federal and state laws, but this strict regulation should not be viewed as evidence that selling your structured settlement will negatively impact your finances. On the contrary, the ability to obtain a lump sum of cash by transferring your payment rights can help you achieve financial goals that would otherwise be out of your reach.

Should I sell my settlement?

You may be surprised to learn that it is perfectly legal for you to sell your structured settlement regardless of the state in which you live. If you believe you can obtain the most return on your settlement by selling it to a buyer who will pay you a premium for the benefit of using the funds for a qualified purpose, then by all means, sell it. However, many states have restrictions on how such a transfer can be executed. State restrictions on structured settlements can vary widely, so it is important that you familiarize yourself with the laws of the state in which you reside. Before selling your structured settlement, you should consult with your state’s securities or business authority to determine if there are any restrictions or regulations you may be subject to.

What is a structured settlement?

A structured settlement is a financial agreement in which you sell your rights to collect a financial benefit, typically a monthly payment, in exchange for cash. In exchange for your participation in a structured settlement, you relinquish your rights to collect a monthly payment and receive a lump sum in cash. Structured settlements have a wide range of benefits, and some of the most commonly marketed benefits include: Cash: You can sell your right to receive monthly payments in exchange for cash.

The benefits of selling a settlement

If you don’t need the funds, selling a structured settlement can be advantageous. Most structured settlements include a provision that allows you to keep the settlement if you need it. So, if you were recently diagnosed with a life-threatening disease or faced a serious accident, you may decide to sell your settlement to help pay for the medical bills you have accrued. However, you can also sell your structured settlement if you’re willing to let your settlement options lapse. Although there are a limited number of ways you can receive additional payments, you may be able to receive additional payments if your settlement simply lapses.

How much is my settlement worth?

If you sold your structured settlement in the past, then you may have had the opportunity to transfer your structured settlement money. Structured settlements have a preset value, which is set by the structured settlement administrator. The administrator will not just settle with the lowest possible amount and hope that you will pay it over time. You will have to make a specific request to the administrator for a lump sum settlement and ensure that you request the most valuable amount available. The structured settlement administrator will assess the claim and take into account all the information about your past behavior in managing your plan. Once the structured settlement has been settled, the structured settlement administrator will send you a receipt for your claim.

Selling your settlement

The ideal way to sell your structured settlement is through a private transaction. There are certain regulatory requirements that must be satisfied in order to receive the full value of your settlement, but selling to a private buyer can still prove to be beneficial. The most important aspect of selling your structured settlement to a private buyer is to provide the required documentation of the settlement payment transfers. The documents must be on file at the company, and if they are not on file, you may be required to submit them with your settlement or reschedule the closing date of the sale. Once your settlement payment transfers are fully documented and available, the seller can choose to accept the buyer’s offer or decline it.


People can put thousands of dollars at risk by selling structured settlements in an attempt to obtain the maximum amount of cash available. Before you sell a structured settlement, ensure that you receive accurate information about what will be paid to you and consider the impact of this transaction on your finances. Alicia Rothman, Partner at Shamrock Realty, has been in the real estate industry since 2007. In that time, she has helped thousands of home buyers find their perfect homes. Email Alicia with any questions.

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