Independent Professional Advice for Structured Settlements

Written by Jovan Johnson, Esq., Structured Settlement & Annuity Specialist

Industry-Reviewed by Kevin Lowe, COO of Genex Capital, Structured Settlement Secondary Market Specialist

Updated July 31, 2026

If you’re selling a structured settlement, you’ll almost certainly be advised in writing to get independent professional advice (IPA) before a court will approve the sale. In most states you can knowingly waive that advice in writing if you choose to — but in a handful of states, actually receiving it isn’t optional. Here’s what IPA is, who qualifies as an independent advisor, and exactly which states won’t let you skip it.

What Is Independent Professional Advice (IPA)?

Independent professional advice is advice from a licensed professional — typically an attorney, certified public accountant, or actuary — about the legal, tax, and financial implications of selling your structured settlement payments. To count as “independent,” the advisor generally has to meet three conditions found in nearly every state’s law: they’re engaged by you, not the buyer; their pay isn’t affected by whether the sale goes through; and the buyer can’t be the one who referred you to them (with a narrow exception in some states for bar-association lawyer referral services).

Why Does Selling a Structured Settlement Require Independent Professional Advice?

Every state’s Structured Settlement Protection Act requires a judge to approve a sale before it’s valid, and the IPA requirement exists so you’re not making that decision based only on information from the company buying your payments. It’s one of several protections — alongside written disclosure statements, notice periods, and the court’s own best-interest review — built into these laws specifically because early structured settlement buyers were criticized for pressuring sellers into unfavorable deals before these protections existed.

Can I Waive My Right to Independent Professional Advice?

In most states, yes. The typical language in these laws requires that you’ve been advised in writing to seek IPA, and that you’ve either received it or knowingly waived it in writing. That’s the case in states like New York, Texas, Michigan, Pennsylvania, Alabama, Illinois, and — despite what some sources claim — California, which explicitly allows a written waiver under Insurance Code § 10139.5(a)(2).

A small number of states don’t allow that waiver. In those states, the court has to find that you actually received IPA — not just that you were advised of the option and declined it.

States Where Independent Professional Advice Cannot Be Waived

Based on a direct check of each state’s current statute, the following states require that a seller actually receive independent professional advice — waiving it isn’t an option:

Alaska — AS § 09.60.200(a)(5)
Delaware — 10 Del. C. § 6601(4)
Louisiana — La. R.S. § 9:2713.6(2)
Maine — 24-A M.R.S. § 2243(1)(D)
Maryland — Md. Code, Cts. & Jud. Proc. § 5-1102(b)(3), with a 2016 amendment that also redefined IPA to require the advisor to address whether the transfer is in the payee’s best interest, not just its legal/tax/financial implications
North Carolina — N.C. Gen. Stat. § 1-543.12(a)(3), where the Act itself states its provisions may not be waived

Four states worth a specific correction: California, Ohio, and Minnesota all allow a written waiver — none of them mandate receipt — and Missouri doesn’t use an IPA framework at all; it requires either representation by “disinterested counsel” or a demonstrated understanding of the transaction, evaluated alongside a fair-market-value standard. If you’ve seen any of these four listed elsewhere as “mandatory IPA states,” that’s outdated or incorrect. Minnesota specifically changed from mandatory to waivable for transfers filed on or after August 1, 2022 — older sources describing Minnesota as mandatory reflect the prior law.

Who Qualifies as an Independent Professional Advisor?

Nearly every state defines this the same way: an attorney, certified public accountant, actuary, or other licensed professional adviser who is engaged by you (not the buyer), whose pay isn’t contingent on whether the sale happens, and who wasn’t referred to you by the buyer or its agent. A common misconception is that certain states require a specific type of professional — for example, some sources claim Texas mandates advice specifically from an attorney, CPA, or actuary as an exclusive list. In practice, Texas’s advisor definition matches the standard model used nationwide and doesn’t restrict you to those three professions alone.

What Does Independent Professional Advice Cost?

Cost-shifting rules vary by state, but California is a useful example: the buyer is required to pay up to $1,500 toward the cost of your independent professional advice, regardless of whether the transfer is ultimately approved (Insurance Code §§ 10136, 10139.5(e)). Not every state has an equivalent requirement, so it’s worth asking your buyer directly whether they’re required to cover this cost in your state.

How to Find Reliable Independent Professional Advice

When seeking IPA, look for:

An attorney experienced with structured settlement transfers in your state.
A Certified Public Accountant who can walk through the tax implications of a sale.
A Certified Financial Planner (CFP) who can help you weigh a lump sum against your longer-term financial picture.

Whoever you choose, confirm they meet your state’s independence requirements — engaged by you, not paid contingent on the sale, and not referred to you by the buyer.

Independent Professional Advice FAQ

Do I have to pay for independent professional advice?

It depends on your state. California requires the buyer to cover up to $1,500 of the cost — other states may not have an equivalent rule, so ask your buyer directly.

Can the buyer’s own attorney or accountant give me independent professional advice?

No. Every state’s definition of “independent” excludes anyone affiliated with or compensated by the buyer.

What happens if I skip independent professional advice in a state where it’s mandatory?

The court can’t approve your transfer without it. In Alaska, Delaware, Louisiana, Maine, Maryland, and North Carolina, this isn’t a step you can decline — it needs to actually happen before your hearing.

Is independent professional advice the same as hiring a lawyer to handle my sale?

Not necessarily. IPA is advice about whether the sale makes sense for you — it doesn’t require that advisor to also represent you in the court proceeding, though some sellers choose the same attorney for both.

Ready to Talk Through Your Options?

If you’re weighing whether to sell a structured settlement, getting a free, no-obligation quote is a reasonable first step before you seek independent professional advice — it gives your advisor real numbers to evaluate rather than hypotheticals.

→ Get your free quote

Sources

About the Author: Jovan Johnson, Esq. is a structured settlement & annuity specialist with 12 years of experience, based in California. He has also practiced as an attorney in consumer and small business bankruptcy and debt settlement. Annuity Freedom has been helping clients sell annuity payments since 2017.

About the Reviewer: Kevin Lowe is the Chief Operating Officer of Genex Capital and has more than a decade of experience in specialty finance and the structured settlement secondary market. Since joining Genex in 2013, he has overseen transaction management, investor relations, compliance, and strategic initiatives across the United States, working closely with annuitants, investors, legal professionals, and financial institutions.

Disclaimer: This article is for informational purposes only and isn’t a substitute for independent professional advice. Nothing here is legal, tax, or financial advice for your specific situation.