Part of the process of selling a structured settlement is the court order petition process. This is when a structured settlement buyer and its counsel submit the documentation regarding the proposed transaction to court to request a hearing for approval of the transfer.
Sometimes a special letter must be submitted along with the other court materials, called an Independent Professional Advisor, or IPA letter. As of the beginning of 2012, the six states that require an IPA letter are Ohio, Delaware, Maryland, Minnesota, Alaska, and Louisiana.
The IPA letter serves as proof to the court that the seller of the annuity payments has met with and reviewed the transaction with an independent professional advisor. All state permit and even recommend that a structured settlement seller meet with an IPA to ensure a complete understanding of the transaction and the documentation involved. The IPA should be free from conflict with the proceeds sought.
Most states so far don’t require an IPA letter. However, CBC Settlement Funding, a company that helps individuals receive cash payouts for selling their structured settlements, recommends that its clients get one in writing. Regardless of state laws, we think it is a good idea for individuals seeking cash payouts periodically or in lump sum to have an independent third party review the transaction.
This party can be a lawyer or accountant who can help you understand the documentation as well as the tax and financial implications of the transfer. This professional must be hired outside of CBC or any other professional financial or legal service. It is recommended that you discuss all of the details of the transaction, and present all related documents, to the person acting as the Independent Professional Advisor.
Once that is done, the next step is to just sign the documents, including the IPA letter, and return it to CBC. Our lawyers can then file all of the documents in court.
It’s an extra step but having an IPA letter ensures that you understand all of the terms of the agreement so that you can achieve your goals of financial security. Call Now: 877-386-3377.