After a loved one’s death, you may find yourself the beneficiary of a structured settlement annuity. While an inherited structured settlement can provide valuable, reliable income, beneficiaries often wonder what options they have available to them. This is especially true for individuals who were not privy to the details of the original arrangement.
Available Solutions for Recipients
Recipients may be able to sell their structured settlement annuity payments for a lump sum of cash to take care of final expenses or other needs. Beneficiaries may also choose to continue regular payments instead. Of course, this is a major decision that should be made with the help of a trusted financial advisor.
The Basics of Structured Settlement Annuities
A structured settlement annuity is a legal agreement to pay money over time to the beneficiary of the settlement. It be part of a personal injury case, a large lottery win, or another official arrangement. The beneficiary of a structured settlement receives a set amount of money each month until the entire amount of the settlement has been disbursed.
When the recipient of a structured settlement dies, this agreement can be inherited by spouses, loved ones, or anyone else named in the official will. When a will does not exist, beneficiaries may need to take additional steps to claim the inheritance.
The Decision to Keep or Sell an Inherited Structured Settlement Annuity
Beneficiaries of an inherited structured settlement have a choice in how they handle their inheritance. They can continue to receive the outlined payments as if they were the original recipient of the settlement, which will provide a regular income.
Recipients may also choose to sell all or part of their structured settlement annuity payments. This provides immediate liquid funds for unforeseen expenses, medical debts, or large purchases. Lump-sum payments are often lower than the original settlement, however. Consult with a financial advisor for more information.
Selling a Structured Settlement
Once you’ve officially inherited a structured settlement annuity, you may need to seek court approval in order to sell your payments depending on the terms of the settlement. . Some structured settlements come with a commutation writer that will automatically convert the payments into a lump sum.
Options for Selling Structured Settlement Annuities
It’s wise to discuss your options with a financial advisor, as they will be able to advise you on the many issues that may impact your decision. If you choose to sell your annuity, be sure to thoroughly research potential companies to buy your structured settlement. Select a company with years of experience as well as a good reputation to have the best possible outcome.
For more information on your unique situation and what options you have available, contact the experts at Novation Settlement Solutions at 1-877-811-6132.
*Novation is not a financial advisor or consultant and strongly recommends that you speak to a lawyer or accountant before making any significant financial decisions.
