Structured Settlement and Annuity Law in Connecticut

Anyone who is interested in selling structured settlements or annuities should know about how these sales are treated in their state of residence. Each state in the U.S. has its own laws regarding structured settlement and annuity sales. When it comes time to sell a structured settlement or annuity in order to prepare for a large purchase, or to help handle financial difficulties, asset holders in the state of Connecticut must comply with specific criteria for state approval.

Connecticut Structured Settlement and Annuity Law: Disclosure

As in many other states, disclosure is the cornerstone of Connecticut structured settlement and annuity law. Buyers of structured settlement and annuity payment rights, typically established financial firms, are required by state law to provide specific information to the seller. The state law even mandates the size of font used in disclosure documents. Buyers must disclose:

• Amounts and due dates of the future payments signed over to the buyer
• Gross and net amounts of the up-front cash payment to the seller
• Lists of any applicable fees, not including some types of legal fees
• Provisions for cancellation of the transaction by the seller

Connecticut Structured Settlement and Annuity Law: Seek Independent Financial Advice

Connecticut state law also requires that sellers must be advised to seek what the state calls’ “independent professional advice,” where someone who is not involved in the deal will help the asset holder understand details of the present and future values of payment rights, tax issues, and more. This is one way that the state tries to make sure that someone selling a structured settlement or annuity is fully informed about the deal.

STRUCTURED SETTLEMENT AND ANNUITY SALES AND CONNECTICUT COURTS

Connecticut is also similar to other states that require structured settlement and annuity sales to go before a local court. The court will look at specific issues to decide on whether to give final approval to a structured settlement or annuity sale.

The court will review whether the seller has been informed about what they are getting compared to what they are signing away. Connecticut courts will also consider the welfare of dependents. If a structured settlement or annuity sale might impact the seller’s ability to provide child support or alimony in the future, this could be grounds for a denial of approval.

FINDING THE RIGHT STRUCTURED SETTLEMENT OR ANNUITY BUYER

Connecticut structured settlement and annuity law is designed to help consumers get the best possible deals when they sign away future payment rights. Asset holders may be able to find better deals on structured settlement and annuity sales by contacting various firms to ask questions about a possible sale.

At CBC, we have a track record of providing excellent customer service to clients who want to benefit from an up-front cash payment from an asset sale. We can provide competitive structured settlement and annuity sale proposals and keep you involved in every step of the process. We know how to work with state law to make sure that these sorts of transactions don’t run into legal snags at the last minute, and that your money will be there when you need it. Ask us about our experience assisting many clients in your state.

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