Selling Structured Settlement from auto accident?
I received a structured settlement from an auto accident I where I was injured in 1989. I am considering ''selling'' 6 yrs worth of payments for a discounted lum sum amount to a broker/investment company. This is a 2 part question:
1)will I have any tax responsibilities for receiving this payout?
2)since my original settlement states I am not entitled to sell, excelerate or transfer any portion of this annuity...if I do so, will this in any way affect the future payments I am not selling?
1 Answer from Attorneys
Re: Selling Structured Settlement from auto accident?
A complete response requires review of the settlement documents and your present situation. Based on information provided, it is likely that there would be no income tax consequences of your selling your right to the future income at a discounted value; presumably, your settlement was in the nature of compensatory damages. Whether the original settlement will enable you to sell the remaining annuity benefits requires a review of the agreement. If sale is forbidden, the buyer will not offer to purchase it without consent of the other party. You are advised to consult with a tax attorney to receive a full review of the situation and your legal options.
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