Aside from the fact that you must be of legal age and of sound mind and judgment, the only requirements that the seller of a structured settlement or annuity payments must have is:
(A) Evidence of the benefit through a settlement agreement or annuity contract
(B) Proof of identity
(C) Approval from the court
Other requirements for a structured settlement sale are set forth under the Internal Revenue Code. Beyond this, however, there are no particular requirements or qualifications that one must meet in order to engage in this type of transaction.
There are laws at the state and federal levels that do govern the sale and transfer of structured settlements. These are in place primarily to protect the seller and prevent him/her from making serious mistakes. For example, most states require that a funding company offer a “cooling off” period after a seller has signed an agreement for them to buy a structured settlement. This gives the seller a chance to change his/her mind within a certain period of time.
Additionally, certain states require that a seller obtain independent professional advice prior to completing a transaction.
Keep in mind that you are not selling the actual settlement or annuity. As the one receiving payments, you are the beneficiary, but the actual settlement or annuity is owned by the insurance Obligor. When you sell part or all of your structured settlement, you are actually selling the right to receive payments, which is then transferred to the funding company.
CBC Settlement Funding can provide you with lump sum cash for settlement payment in whole or part, provided you have the legal right to receive these payments and are legally competent to enter into a contract. Contact us today for more information on customized cash options to fit your financial needs.