Structured Settlement and Annuity Law in Kentucky
When someone who holds a structured settlement payment agreement or an annuity wants to sell one of these assets, it’s important to understand how their state of residence treats these transactions. Each U.S. state has its own laws on structured settlement and annuity sales, and a seller needs proper preparation if he or she wants to assign future payment rights to get an up-front cash payment. Those who are lucky enough to have these assets often want to sell part or all of a structured settlement or annuity in order to:
- purchase real estate or renovate a home
- fund higher education
- pay down high-interest debt
- pay for unexpected emergencies, such as high-dollar medical debt
States have made structured settlement and annuity laws in order to make sure that sellers of these assets are not taken advantage of. Many states have requirements regarding how up-front cash payments are used by those who receive them in structured settlement and annuity sales.
Kentucky Structured Settlement and Annuity Law: Basic Provisions
Although Kentucky structured settlement and annuity law is less detailed than similar laws in other states, many of the basic elements of other state laws apply. Kentucky state law requires:
- local court review of the sale
- paperwork to be filed in court
- disclosure paperwork from the buyer, to be presented to the seller
Kentucky Structured Settlement and Annuity Law: Disclosure
Like other states, Kentucky mandates certain kinds of financial disclosure. Structured settlement and annuity buyers must provide sellers with:
- the amounts and due dates of payments proposed for transfer, and the aggregate value of these payments
- established value of the payments calculated according to discounted present value, a common method for asset valuation
- gross amount of the up-front cash payment the seller will receive
- list of commissions, service charges, closing costs, administrative charges, and other applicable fees
In addition, Kentucky courts will look at whether a structured settlement or annuity sale is in the best interest of the asset holder and their family.
SELLING YOUR STRUCTURED SETTLEMENT OR ANNUITY
In some ways, Kentucky state law differs from the strict requirements for structured settlement and annuity sales of many other states. For example, Kentucky law does not require that sellers get a recommendation to seek independent professional advice on these sales. In order to get the best outcomes, however, someone wanting to sell a structured settlement or annuity should always consider seeking professional advice as obtaining multiple offers for their payments..
At CBC, we have a wealth of experience in dealing with structured settlement and annuity sales and helping our clients get these kinds of transactions approved according to state law. We have a track record of excellent customer service, and our caring and attentive staff will help you through every step of your structured settlement or annuity sale to make sure that it’s done your way. Let us help you with this important financial task.
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