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  • Writer's pictureStephen H Akin

Annuity Fair Value?

Are you considering the sale of an annuity or structured settlement?

As a Registered Investment Advisor, Akin Investment is here to help.

For a free no obligation estimate of what

the approximate lump sum value your

structured settlement or annuity is worth

reach out now.

Structured Settlement Protection Acts across the United States are in place to protect the interest of the recipient of the structured settlement.

States that now require the registration of the transferees:

Maine, Maryland, Louisiana, Georgia, South Carolina and West Virginia

States that require Independent Professional Advice:

Alaska Maryland

California Minnesota

Delaware Missouri

Louisiana North Carolina

Maine Ohio

We will provide a comprehensive review of the recipients financial condition and discuss the options that are available to them. At the conclusion of this review we will provide an "Independent Professional Advice" letter.

Independent Professional Advisors (IPAs) are certified financial services experts. The Structured Settlement Act of 2002 defines the qualification for this role as professionals working as certified public accountants, actuaries or licensed professional advisors. Their expertise enables them to consider the pros and cons of a major financial decision and to provide you with a written recommendation.

Structured settlement recipients pursuing the sale of payments can meet with an IPA and receive a recommendation in favor of or in opposition to selling payments.

The cost will depend on which type of professional you turn to and their rates. Consultations (which include formal documents) can range from $500 to $1,500. Some buyers will reimburse sellers for this cost, but will not directly choose and pay for the IPA as this could result in a conflict of interest. Federal law prohibits the IPA from being affiliated with or employed by the settlement buying company. This protects the seller and ensures advice is impartial.

Sellers then bring the recommendation to court—if the letter endorses the transfer—when attending the required hearing that is part of the selling process. A judge considers the IPA’s recommendation as a factor in deciding whether or not to give approval.

With the explosive cost of living increases there is an increase of interest from holders

of Structured Settlements, Annuities and Life Insurance policies trying to raise cash.

"Caveat Emptor," the Latin motto which means "let the buyer beware," but in

this case "Caveat Venditor" meaning "let the seller beware," has a clearer ring for anyone considering the sale of these assets.

Selling a structured settlement is always a money loser 100% of the time.

If you want to sell an annuity for cash, sell a structured settlement for cash, or pursue a settlement loan including cash for life insurance it's important to consider the consequences.

A structured settlement is a financial arrangement between an insurance company and a person that arranges for the payment of court awards and lawsuit settlements in tax free installments instead of in a single payment. Each structure is created for the specific individual so that it’s valuable and helpful for them. The payment period and amounts will vary.

Structured settlements are now used in a wide variety of types of lawsuit settlements such as:

  • aviation

  • construction

  • auto

  • medical malpractice

  • product liability

Other uses for structured settlements are:

  • divorce

  • minor children

  • estate planning

  • tax planning

  • trusts

Structured settlements may include income tax and spendthrift provisions.


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