If you have an annuity that you would like to sell, annuity buyers can help you get your money quickly. But take note. There are unethical annuity buyers lurking. And in this case, â€œlet the seller beware.â€ As you try to sell your annuity, be sure that you are working with a legitimate and ethical annuity buyer.
Here are five ways that you can spot annuity buyers that are unethical or illegitimate.
The Buyer is Not knowledgeable or Forthcoming about Internal Revenue Code 5891
Since many structured settlements come in the form of an annuity, the government has taken special interest in the method used to sell these settlements. In 2002, the United States established Internal Revenue Code 5891 which grants oversight of the sale of structured settlements to the states. This code gave some regulations that most of the states use as the basis for the process in their jurisdiction. In each of the states that have adopted the guidelines in IRC 5891, a court must decide if the purchase deal is in the best interest of the seller and his or her dependents.
Any legitimate buyer will be knowledgeable about this Internal Revenue code if he or she purchases settlements within the 48 states that follow the code.
The Buyer Rushes You to Make a Decision and Fill Out Paperwork
An unethical businessperson might rush you to make a decision with the intent of hiding any unethical practices. This type of practice happens with many products â€“ and annuity buyers that are not legitimate are no different.
While many ethical annuity buyers know their business so well that it might seem like they are rushing you, you can usually tell when you are being pressured just to â€œclose the saleâ€. If you suspect that you are being rushed so that you donâ€™t notice or suspect problems, try to slow the annuity buyer down. If he or she resists or pushes you harder, this is not the right buyer for you. Ethical annuity buyers will take the time to explain every aspect of the deal to you so that they know you feel secure in your choice to sell.
The Buyer is Unable to Answer Your Questions
Some illegitimate annuity buyers just plain donâ€™t know the business. These types of â€œbusinesspersonsâ€ tend to use the latest schemes in any area to take money from unsuspecting victims. They might run a scheme regarding money orders one day and annuity buying the next. In these cases, they will learn only as much as they need to know to get them by.
Make sure that any annuity buyers that you are thinking about conducting business with are thoroughly knowledgeable about annuities and structured settlements. Ensure that they have served many other customers and ask for, as well as check, their references.
The Buyer Insists that There is No Need to Go to Court
As stated previously, the United States government has an interest in protecting you and your dependents from unethical annuity buyers. For this purpose, they impose regulations that include seeking approval from the courts for annuity sales transactions. If the annuity buyer insists that he or she can bypass this process, look for another buyer.
The Buyer Promises You Money Tomorrow
Although selling your annuity will get you money faster than keeping the annuity, it wonâ€™t get you money in one day. There is a process that needs to be followed in this transaction and it can take a couple of months to reach the conclusion. Annuity buyers that insist that they can get you money within the week might have some alternative motives in mind.