Sorry Einstein structured settlements but as it has been said before – Einstein does not equal more cash
If there is a secret formula to obtain more cash from your structured settlement annuity, lottery, or investment annuities it’s this, MC=MO . More cash equals multiple offers. To ensure you receive the most money for your settlement call multiple companies and compare the offers. In the end you’ll be happy you did.
Is it Einstein or just an average client?
Taking a look at the Einstein website under reviews, they have a video testimonial of a Hispanic client praising Einstein for their large lump sum. The young lady claims to have won the lottery but was just receiving $15,000 a month for life; Einstein helped her convert her payment into a lump sum so she could buy an oceanfront property in Miami and a Bentley.
At the end of the day individuals who sell their annuities, structured settlements and lotteries can do what they want with their lump sum, but gloating about buying an oceanfront property and a Bentley can hardly be considered a typical and noteworthy reason to sell your payments. This reason will certainly not satisfy the best interest determination by the judiciary across many States in the US.
Perhaps a more realistic example is a father who inherited his recently deceased son’s annuity and is selling the future payment streams to pay for the funeral expenses that are in excess of $8,000.
There have never been more companies offering to buy your future payment streams in exchange for a lump sum than there are today. While the process of selling an annuity, lottery, or even a pension is not complicated the decision should not be taken lightly. Consult with your trusted friends, family and advisors about the decision and always research the company you are considering doing business with.
Rhode Island Lottery Big Payouts
You may recall an 81 year old resident of Rhode Island winning the third largest Powerball lottery in the history of the game. That winning would have paid out $336.4 million in the form of 30 annuity payments paid over 29 years. The winner elected not to take the annuity and instead chose a lump sum of $210 million.
Not only was Ms. White the winner, the State of Rhode Island also experienced an increase to its general fund. The state fund received $22.8 million more than the previous year.
Ms. White set up a trust, pleasantly named the Rainbow Sherbert Trust, for which the lump sum will go into.
While Ms. White opted to accept the lump sum amount, lottery winners and holders of annuity, and structured settlement policies may also opt for a lump sum through the secondary market. Contact Rescue Capital for more information.
NY Courts Reaffirming Best Interest Standards
The New York trial court denied a proposed sale of structured settlement payment rights in July basing the decision primarily on the grounds the sale of the annuity was not in the best interest of the annuitant.
The New York structured settlement protection act prohibits the transfer of structured settlement payment rights unless the transfer has been authorized by a court of competent jurisdiction. The courts must find, among other requirements, the transfer is in the best interest of the payee, the payee’s dependents, and whether the discount rate used to purchase the annuity is fair and reasonable.
In The Matter Of The Petition Of J.G. Wentworth Originations, LLC (Pretto) the courts did not feel the annuitant had exhausted all of her means to raise money for her education prior to deciding to pursue a sale with JG Wentworth. The Court said, “However admirable Pretto's intention to obtain a degree… the taking of such a deep discount on her settlement funds is a questionable means of attaining her goal.”
The annuitant, Pretto, may have found interest rate much lower than the 19.11% proposed by J.G. Wentworth. In addition, the 19.11% discount rate was found by the courts to not be “fair and reasonable within the meaning of the SSPA…”
There are many ways to pay for college; deciding to sell an annuity or structured settlement annuity should not be the first option in order to finance an education.
Best Places to Live
CNN Money has released their latest report on America’s Best Places to Live their rankings are based on cities that have a large availability of job opportunities, schools that provide high quality of education, and safe neighborhoods.
These are qualities that many holders of investment annuities and structured settlement annuities seek when deciding to sell all or a portion of their annuities. “Sellers want a lump sum of money that will enable them to move out of a current living situation that is not optimal for their families and to purchase a home or rent in an area that is more suited for them” says John Zepeda, Vice President of Rescue Capital.
The use of funds is a factor that the courts take into account when reviewing an application for the sale of a structured settlement.
When a Judge reviews the application for a transfer, an approval will be based on many factors, one being that the structured settlement payment right being sold is fair and reasonable and in the best interest of the payee, the individual selling the annuity, taking into account the welfare and support of his or her dependents, if there are any.
Relocation for a better opportunity is one of the reasons why selling an annuity is often approved by a Judge.
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