Selling a Structured Settlement or Annuity in Tennessee
Structured settlements and annuities are designed to help recipients to meet regular expenses and maintain a household budget over time. However, in some cases, people holding such assets may need some of their money more quickly. Structured settlement and annuity holders may need to set up a full or partial structured settlement or annuity sale for a number of reasons:
- to pay down high-interest debt
- to pay emergency bills such as costs of medical care
- to pay for college or higher education
- for a down payment on a home or real estate investment
Like many financial transactions, a structured settlement or annuity sale can be a complicated process. Many state governments including Tennessee have become involved to ensure that consumer selling a structured settlement or annuity get a fair deal. If you live in Tennessee and you want to get an up-front payment from one of these assets, it’s a good idea to understand how structured settlements and annuities are handled in your state.
Tennessee Structured Settlement and Annuity Law: Necessary Disclosure
The Tennessee law on structured settlements and annuities sets up detailed requirements where the party that is buying the structured settlement or annuity, usually an established financial company, needs to provide the seller with information such as payment amounts, timelines, etc. The law sets deadlines for providing this information to the seller, and to the local court.
Part of what the buyer has to provide to the person selling a structured settlement or annuity is a breakdown of how the up-front payment compares to the value of future payments. This is done using a calculation called ‘discounted present value’ that helps to show how much the future payments would be worth over time.
Tennessee Structured Settlement and Annuity Law: Court Review
The Tennessee structured settlement and annuity law also sets up criteria for courts to decide whether a structured settlement or annuity sale is a ‘good deal’ for the seller. The Tennessee law spells out four specific items that the courts should look at while making this decision:
- The terms of the deal (value of lump sum payout against future payment value, etc.)
- The seller’s additional sources of income and how structured settlement and annuity payouts fit in
- The effect of the payout on dependents
- Whether a payout affects the seller’s ability to make any child support or alimony payments if applicable
In the end, all of this is aimed at making sure that someone trying to sell a structured settlement or annuity understands what exactly he or she is getting.
SELL YOUR STRUCTURED SETTLEMENT OR ANNUITY WITH CBC
CBC is a local, established structured settlement and annuity buyer with a great track record for helping clients to get equitable, professional transactions done. We have a wealth of experience in structured settlement and annuity sales, a reputation for excellent customer service, and an attentive staff that will listen to you and keep you informed about your structured settlement or annuity sale every step of the way. Let us help you with this important financial task.
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