Tip #1: Make a Wise Settlement Decision from the Beginning

If you have the option, it is always best to make a decision about receiving structured settlement payments before you agree to a settlement. You may, from the beginning, choose to press for a lump sum payment vs. periodic payments. This is not just black and white, either - you may negotiate for a combination agreement. You may want to get a smaller lump sum plus periodic payments, or decide that you will need a lump sum at a f

uture date. You may want to consult with a tax adviser and see what arrangement makes the most sense from a tax perspective. If you are in this stage of the settlement, remember: now is your best time to decide . Should you decide to sell your structured settlement at a future date, you will be losing a percentage of your money to companies that buy structured settlement payments.

Tip #2: Watch Out for the Tax Man

Although you may be considering selling your structured settlement, it is important to consider that it was probably structured from the beginning to provide you with significant tax advantages. As a result, you may be in for an unpleasant surprise if you decide to receive a lump sum payment. Check with a competent tax adviser to see what the ramifications are in your situation.

Tip #3: Beware of Hidden Restrictions on Selling Structured Settlements

Many people do not realize that federal regulations can limit and restrict the sale of structured settlements. In addition, approximately 60% of the states have some laws on the books which restrict the sale of structured settlements.

Find out which laws apply to your situation. You may have to obtain court approval for the sale, and the process of transferring settlement payments to a buyer can be highly regulated by your state. Also, if your structured settlement was issued by an an insurance company, watch out for hidden clauses in the agreement. They may state that payments cannot be sold to another party due to language in their policy.

Tip #4: Don’t Take the First Offer You Get

This tip almost seems like common sense, but many people attempting to sell structured settlements are excited by the prospect of receiving a huge lump sum of cash. But it obviously pays to shop around. Even if your first offer seems excellent, get quotes from at least 2-3 other buyers of structured settlements to see if the first offer can be topped. Due your research, however, and make sure you are dealing with a reputable buyer of structured settlements . If one buyer’s offer is way better than the others, be on alert - if it seems too good to be true, it probably is.

Tip #5: Get a Good Lawyer

When dealing with such a large amount of money, consulting with a lawyer can pay for itself many times over. A lawyer experienced in dealing with settlements can tell you if your buyer’s offer is reasonable, as well as if the terms of the purchase agreement are right for your situation. He or she can also protect your rights, in case any of the parties in the transaction are not cooperating or sending payments according to the agreed contract.