Are you Complying?
Posted on February 26, 2014
When dealing with secondary market annuities you want to use an intermediary to ensure that compliance is handled in the correct way.
Secondary market annuities can/will unravel if applicable federal and state laws governing the underlying structured settlement factoring transactions have not been complied with.
This intermediary can research to make sure that there were no bribes paid to the seller in any way. They will know all the background of the structured settlement that you would not know.
Often, people don’t really understand exactly what it is they are buying when purchasing structured settlement payment rights. That being said, how would you know to ask if the seller was solicited?
Some questions you want to ask about intermediary’s you are looking into working with would be what assurances and/or proof they provide, do they have error and omissions insurance that covers the transaction, and how many transactions do they do a year?
Did you know that under federal law there is a 40% excise tax imposed on the factoring discount if the rules set forth in IRC 5891 and applicable state structured settlement payment act(s) are not complied with? Who pays that? You do!
Also something else to be aware of is that in a state that does not require in person hearings when structured settlement transfers come up for court approval, it can later be determined that the structured settlement factoring transaction was not in the seller or applicable dependants best interest, possibly after the fact.
If the structured settlement transfer laws are not complied with, you as the investor may get your money back, but could also face additional legal expenses.
Be wary when scanning the internet seeking information on structured settlement investments. There are a ton of affiliate marketing websites you could be sucked into. Some of these websites go after small investors, not institutional investors.
If you fail to do your research you could have less than desirable financial consequences.
That is something that no one wants to have happen to them. Always make sure to do your homework, put together your questions, get the answers and the proof that those answers are correct so that you and your financial status are not deterred in any way.
Always look for someone reputable to help you with this process to make the most of your money and time. There are a lot of people that have the knowledge to make this an easy and smooth transaction for you, you just need to find someone that you are confident with.
I would like to help you with this process. If you are interested in talking about how we can work together please don’t hesitate to contact me.
John Bulbrook, Bulbrook Drislane – IN-FORCE ™ Secondary Market, Finance and Investments, Secondary Market, Annuities, Fixed Term Annuities, Life Insurance, Structured Settlements, Previously Owned Annuities, Pre Owned Annuities, Immediate Annuities, Factored Structured, Settlement Secondary Market Annuity, Aftermarket annuity, Inforce fixed term annuities, Inforce fixed term annuity, Inforce annuity, Deferred Variable Annuity, Inherited Annuity, Equity Annuities, Straight Life Annuity, Non Qualified Annuity, Mutual Fund Settlement, 20 Year Annuity, 10 Year Annuity, 5 Year Annuity – Click here for his Facebook,Twitter, LinkedIn, Google Plus