Sell structured settlement

The money you receive when you sell structured settlement, will have the same tax treatment as the payments you receive from your structured settlement annuity. If you currently receive your payments tax free the money you receive from selling your payments will be tax free. In most cases your structured settlement annuity payments are tax free because your annuity was set up to qualify for tax free treatment under section 130 of the Internal Revenue Code. The U.S. Federal Government has taken several steps to insure that payments received for damages from personal injuries will be tax free. In 2002 federal legislation was passed to protect payees should they decide to sell their structured settlement payments. As a result, Section 5891 was added to the Internal Revenue Code. Section 5891 requires the sale of structured settlement payments must be approved by a court in accordance with the relevant State statute. Provided the sale is conducted in accordance with Federal and State laws there are no taxes payable.

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