What Requirements Must Be Met to Complete a Structured Settlement Sale?

When you sell your structured settlement, you transfer your right to receive the payments to the company buying it. A structured settlement is a legal payment made over time after winning a personal injury case. Some people may not want to be paid periodically, and thus prefer getting all the money in one sitting. Even though a structured settlement is a great asset, situations may arise such where you need a lot of money. In these cases, you may have to look for companies that buy structured settlements and sell the payment for a lump sum of money. However, there are requirements you must meet to complete the sale. 

Some common reasons you may want to sell your payments include:

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  • Pay off a high-interest debt
  • Buy or renovate a home
  • Deal with a family emergency
  • Pay off a mortgage
  • Pay for unrelated medical expenses

Your reason for selling the payments may not be among these. However, the ultimate goal is to get a lump sum instead of periodic payments.

Requirements to Complete a Structured Settlement Sale

  • Confirming Legality

One critical thing you should know is that you must sell the payments legally. Federal and state laws govern structured settlements. Therefore, you must consult a legal expert to learn if you are eligible to sell your annuities. The laws surrounding these payments are designed to protect individuals from persuading buyers and discourage them from squandering the money.

Before you sell, you must confirm you comply with state and federal laws depending on where you are. Since state laws vary, you’ll need to confirm the laws in your state. A financial advisor or attorney can help you understand the legality of selling a structured settlement.

  • Determining Reason to Sell

When you sell your payments, the rights to receive these payments are automatically transferred to the company. For instance, when you sell your annuities to a buyer like We Pay More Funding, the company will be the one to continue receiving the benefits. 

You also need to determine the amount you need to cover your financial obligations. This information will determine how much of your future payments you should sell. When selling the payments, you have three options. You can sell the entire amount, partial, or lump sum, depending on the amount you think will be enough to cater to your needs. You must also understand that the amount you get from the company will be less than the amount you would receive from payments over time.

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  • Getting Court Approval

If you already have a prospective company to sell your annuities to, there is one final step you must take. The court must approve your sale by confirming the viability of your reason to sell your payments. The judge will need to prove you have not been intimidated and that the reason to sell serves your best interests.


You must meet these vital steps and requirements before selling your structured settlement. Remember, the transfer is irrevocable, so you must be sure about the decision.