Commons Reasons for Selling Lottery Annuity Payments
If you are lottery winner who selected to receive annuity payments after winning you have options if you need to access cash. Your annuity payment schedule should not restrict you – you have options to get cash more quickly than your annuity schedule allows. You can cash in your annuity payments and receive a lump sum payment through an annuity buying company.
When life brings the unexpected and you have a need for cash – you may be in a position to sell your annuity payments and get access to the funds you need. The needs might include unexpected expenses from a medical emergency to an investment opportunity that requires funds now. Either way, you can access the funds you need in a few basic steps. Read on to learn how.
How to Sell in Four Simple Steps
- Get a Quote for Your Annuity Payments
- Accept Offer
- Court Review and Approval of Sale
- Receive Cash
What to Look for in Your Purchasing Company
If you have decided to sell your annuity payments, you need to know how to find a reputable company. There are many purchasing companies in the market. Before you decide to work with a company you should check whether they are certified and licensed. It is also good to check how long the company has been in business.
In the process of requesting a quote, make sure that it is clear how long the quote is valid for and whether there are additional fees. Pay careful attention to how the buying company’s representatives treat you during the quote process. Are you given time to ask questions? Do the company’s representatives demonstrate they want you to fully and clearly understand the process? These are the signs of a company that puts the customer first. Some companies rely on putting an enormous amount of pressure on potential annuity sellers – you do not want to work with one of these companies. Remember – you are in charge!
Why Your Quote is Less than the Total Annuity Value
It is important to know that when you sell your payments you will not be receiving the full amount of your annuity. This is the price that you pay for getting access to your cash now. The amount you receive less than the value of your annuity payments is the discount rate – and unlike when you are shopping at a sale you want to look for the lowest possible discount rate.
A good annuity buyer will be completely transparent about their quote and clearly show the discount rate and any other fees involved in the transaction.
Final Step – Court Approval
When you are ready to accept a quote from a buyer you will officially accept an offer from them. The buyer should then support you to file for court approval of the sale. This will require a court appearance from you, the seller, during which the judge will review the terms of the sale and make sure that the transaction is done in a manner which is in the seller’s – your – best interests.
Can I sell my lottery payments?
This is the first question anyone should ask themselves. Unfortunately, the answer is that it largely depends on state law. You should contact your lottery company to get a final answer. Currently, twenty eight states allow some form of sale of lottery annuity payments whether in full or in part.
Should I sell my lottery payments?
The decision to sell lottery payment should be taken seriously as it will directly affect your financial situation, potentially for the long term. There is also the question of taxes as cashing in your lottery payments will result in additional tax liabilities. The cash that you receive as a result of selling all or part of your annuity payments will mean an additional tax burden. Consult with a tax or finance professional before you make a final decision.
When is the right time to sell lottery payments?
When there is a need for additional cash in your life and you will suffer financially if you do not get access to this additional cash now.
What is the best way to sell lottery payments?
The first step in selling is to contact a representative of a lottery payment buying company. A good company will not pressure you to make a decision before you are ready. Look for a competitive quote as well as customer service that meets your needs rather than puts pressure on you to make a quick decision.
Just a few easy steps to sell your lottery payments