In 2000, the National Structured Settlements Trade Association and National Association of Settlement Purchasers agreed on language that was designed to protect the consumer when selling their structured settlement payments for cash. This language is referred to as the "Structured Settlement Protection Act" and 47 states have adopted laws that are closely aligned with the model statutory language. The District of Columbia, New Hampshire, Vermont, and Wisconsin are the only 4 jurisdictions that have not enacted their own Structured Settlement Protection Acts. Annuitants (sellers) who live in the District of Columbia, New Hampshire, Vermont, or Wisconsin could reasonably be worried that if their state has no structured settlement protection act, they would not be able to sell any of their structured settlement payments. However, the good news is that they are able to sell and transfer their structured settlement payment rights under the Structured Settlement Protection Act of the State in which the insurance company who makes the payment is located. The federal law governing the transfer of structured settlement payments, Internal Revenue Code Section 5891, requires that every transfer of structured settlement payment rights must be approved by a court order. And the same law legislates where the court order must be obtained: in general, IRC Section 5891 requires that the court order be obtained in a court in the state where the annuitant lives in accordance with the state’s Structured Settlement Protection Act. However, if there is no Structured Settlement Protection Act in the state where the annuitant lives, then the court order can be obtained in the state where the insurance company is located, in accordance with the Structured Settlement Protection Act in that particular state. So, if any structured settlement annuitant is currently living in the D.C., New Hampshire, Vermont, or Wisconsin, they don’t need to worry about not being able to sell their structured settlement payments for a cash lump sum. All they have to do is to contact Strategic Capital and we will obtain the court order from the court in the state where their insurance company is located. Please call us should you have any questions or inquiries about any selling your structured settlement payments and the process involved †1-866-256-0088
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