Legal Guidelines

When it comes to selling a structured settlement, 49 states have specific laws governing the process of selling structured settlement annuity payments. These laws are drafted based on the Internal Revenue Code 5891 that was signed into law in 2002. IRA 5891 requires that all structured settlement transactions be approved by a state court and makes certain that the transfer is in the best interest of the seller and the seller’s dependents. This helps ensure that purchasers treat sellers fairly in this process.

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