The ads are everywhere–online, on radio and on TV. They offer quick cash for structured settlement annuities–court-ordered payment structures that are designed to provide a steady, reliable and tax-free stream of income to injured parties. The ads are particularly tempting during these hard economic times.

‘Thankfully, because of a bill passed last year, SB510, that revised the structured settlement approval laws, a settlement annuity can only be sold after the courts determine whether injured parties know exactly what they are giving up if they sell their annuity to a “factoring” company for a lump sum.’

In part, SB510 gives explicit guidelines to the courts to better determine whether an annuity sale is in the best interest of the injured party. The court reviews the injured party’s current and future financial needs, makes sure the party has received independent legal and financial advice concerning the buyout and looks to see if the “discount rate” proposed by the factoring company is in keeping with current market rates. The courts now also require that injured parties be clearly shown the value of the structured settlement versus the value of the often much-discounted lump sum buyout.

A court review of a buyout often gives injured parties a reality check. After stripping away all the hype and promises of a buyout, a structured annuity usually provides the best tax-advantaged financial option for the injured party.

The new court oversight rules level the playing field and enable injured parties to get all the facts before deciding whether to sell their annuities.

Patrick C. Farber Structured Settlements Broker – With more than 30 years experience, Pat has placed over $1.75 billion in annuity premiums and U.S. Government notes. He specializes in settlements involving medical malpractice, physical injury, non-physical injury, product liability, workers’ compensation, mass torts, punitive damages, employment, construction defect cases and attorney fees in court hearings, arbitrations and settlement conferences–all at no cost to clients. E-mail Pat personally at or call 800-734-3910.