What is Independent Professional Advice (IPA)? Independent professional advice is the advice of a licensed professional, such as an attorney or certified public accountant, who is not connected with the party seeking advice.
Why You Should Obtain Independent Professional Advice Before Selling Your Structured Settlement
Selling a structured settlement can be a significant financial decision, and it’s essential
to approach it with care and proper guidance. Whether you’re considering selling your
settlement to address immediate financial needs or to pursue an investment opportunity,
obtaining independent professional advice can safeguard your financial future
and ensure you’re making an informed choice. Here’s why seeking this guidance is
crucial.
- Understanding Your Settlement’s Value
Structured settlements are designed to provide long-term financial security through periodic payments. However, the true value of your settlement may be difficult to ascertain without expert assistance. Independent financial professionals can help you:- Assess the present value of your payments.
- Evaluate offers from purchasing companies to ensure they are fair.
- Understand how selling part or all of your settlement impacts your future finances.
- Ensuring Compliance with Legal Requirements
The sale of structured settlements in the United States is governed by Structured Settlement Protection Acts (SSPAs), which require court approval for any transfer. Independent advisors can help you navigate:- State-specific legal requirements.
- The preparation of necessary documentation.
- Presenting your case effectively during the court review process.
- Avoiding Unfair Deals
While we are proud of our approach to customer care and fairness, not all structured settlement buyers operate with your best interests in mind. By working with an independent professional, you gain:- An unbiased evaluation of offers.
- Protection from predatory practices.
- Negotiation support to secure better terms.
- Understanding Tax Implications
Structured settlements often carry specific tax advantages. Selling all or part of your settlement could have tax consequences that might not be immediately apparent. We are not professional tax advisors and therefore cannot provide tax advice. Independent advisors can:- Clarify the tax implications of your decision.
- Help you minimize potential tax burdens.
- Ensure compliance with IRS regulations.
- Protecting Your Long-Term Financial Health
Many of our clients contact us when they have substantial and immediate financial needs. Immediate access to cash might be tempting, but it’s crucial to consider the long-term impact of selling your structured settlement. Independent advice can help you:- Develop a financial plan to manage the proceeds responsibly.
- Weigh alternatives, such as selling only a portion of your payments.
- Preserve financial stability for the future.
- Expertise Beyond the Sale
Financial advisors, attorneys, and tax consultants bring expertise beyond the transaction itself. They can provide insights on:- Investing your proceeds wisely.
- Creating a strategy for debt management.
- Exploring alternative funding sources if selling your settlement isn’t the best
- choice.
- Mandatory Independent Advice (IPA) Transfer States
If you reside in any one of these states you MUST obtain independent professional advice because these are mandatory IPA states:- Alaska
- California
- Delaware
- Louisiana
- Maine
- Maryland
- Minnesota
- Missouri
- North Carolina
- Ohio
How to Find Reliable Independent Advice
When seeking professional advice, look for:
- Certified Financial Planners (CFPs): Experts who can guide you on financial planning and investment strategies.
- Structured Settlement Attorneys: Professionals specializing in or familiar with legal aspects of settlement sales.
- Tax Advisors: Licensed professionals, probably accountants, who understand implications of tax law.
Conclusion
Selling your structured settlement is a major financial decision that requires careful
consideration. By obtaining independent professional advice, you can ensure you’re
making a well-informed choice that aligns with your immediate needs and long-term
goals. Professionals can help you avoid common pitfalls, secure fair terms, and protect
your financial future.
If you’re contemplating selling your structured settlement, take the first step by
consulting with a trusted financial advisor or attorney. Their expertise can provide clarity
and confidence, making your transaction smoother and more beneficial.