Michigan Structured Settlement and Annuity Law
A structured settlement or annuity sale can be a great way to get cash to pay down debt, make a down payment on real estate, or otherwise accomplish smart financial moves for a family. However, each state in the U.S. has its own rules on structured settlement and annuity sales, and structured settlement and annuity holders should know a little about what they need to comply with in a particular state of residence in order to get a cash lump sum payment from the sale of one of these assets. In the state of Michigan, there are strict rules regarding these kinds of transactions, spelled out in a law passed in 2006 that establishes parameters for the buying and selling of structured settlements and annuities, including a mandatory court review of a structured settlement or annuity sale application.
Structured Settlement and Annuity Law in Michigan: Disclosure Rules
One thing that the state of Michigan requires for structured settlement and annuity sales is disclosure. The financial company that is buying the structured settlement or annuity, and therefore collecting the future payments, needs to disclose certain information to the ‘payee’ or seller of the asset. This includes the value of a lump sum payment against the value of future payments using what’s called ‘discounted present value’ to show the seller how much they are getting and how much they are signing away. Michigan rules require specific disclosures a certain time before the finalization of a deal, and even set mandatory sizes for small print in the agreement.
Structured Settlement and Annuity Law in Michigan: Independent Professional Advice
Another important clause of Michigan law requires those buying future payment rights to suggest that sellers get independent professional advice on the sale. This provides another opportunity for the seller to learn about the market for structured settlement and annuity assets. An outside professional can counsel a seller about how to get the best deal, including the idea that sellers can benefit from shopping around for a structured settlement or annuity buyer.
STRUCTURED SETTLEMENT AND ANNUITY LAW IN MICHIGAN: CONSUMER PROTECTION
The reason for many of these laws around structured settlement and annuity sales is that state officials want to make sure that structured settlement and annuity sellers do not take inferior deals without understanding what they can get on the competitive market. When it comes to selling a structured settlement or annuity, state governments want to make sure that the deal is as clear and transparent as possible.
SELL YOUR STRUCTURED SETTLEMENT OR ANNUITY WITH CBC
At CBC, we understand everything about structured settlement and annuity sales, including state laws. We have a track record of excellent customer service. Let us help to make your structured settlement or annuity sale easy and efficient, so that you can move forward with your financial goals.