Can a claimant sell the annuity to a third party for todays cash value?
The annuity isn’t the claimant’s to sell for the reason explained above. The annuity is owned by the Insurer (or the life company affiliate) and they have accepted the obligation to make the scheduled payments. However, due to recent legislation, some or all of your benefits may be given to a third party if you qualify, which requires proof of extraordinary circumstances and approval by a court of appropriate jurisdiction. If the requirements are not met, the third party attempting to buy the annuity will be subject to a 40% tax penalty. The purpose of this law is to protect the future needs of the claimant—the original intent of the Structured Settlement.
