When you initially won the lottery, chances are good that you never imagined having to sell your annuitized payments in order to get a lump sum. However, that’s the reality for more winners than you might imagine. It might sound odd, but many winners actually find that the annuitized lottery payments they end up with don’t give them the financial means to meet their goals. Selling your lottery payments gives you a lump sum of money to do with what you will. However, you’ll need to go about selling those payments the right way.
Check Your State Laws
In most states, it’s perfectly legal to sell your lottery payments, so long as a judge signs off on it. However, that’s not the case in all states. The first tip is to check your state’s specific laws regarding lottery payment sales. You’ll likely notice non-transfer language in your agreement, but that doesn’t necessarily mean that you can’t sell. Speak with an attorney or consult your state’s laws and regulations to find out if you have the right to sell.
Decide How Much
You don’t have to sell the entirety of your lottery payments all at one time (or ever). You’re free to sell as many payments as you wish. This can work to your advantage. For instance, if you just need the cash on hand to purchase a home without having a mortgage, you can sell just enough payments to cover that cost and keep the remainder in an annuitized format. You can sell enough payments to cover your child’s college tuition and save the remainder. On the other hand, you might want to sell all of your payments so you can invest against inflation and future problems. The choice is yours, but you need to determine how much of your winnings you want to sell now.
Find a Buyer
Perhaps the most difficult thing to do is finding a buyer. They’re most certainly out there. How do you find them, though? Going it alone here is most certainly not the right option. You might find one or two companies willing to buy your lottery winnings, but chances are good they’re big companies that only work with brokers (which decreases what you get out of the sale). You also have no way to verify that those buyers are actually worth your time.
The best course of action here is to work with a third party that specializes in connecting buyers with sellers of lottery payments, annuities and structured settlements. The right company will provide you with a marketplace populated by companies ready to buy your lottery payments, all of which have already been vetted and certified. You’ll also benefit from a faster sales process, less waiting time and the peace of mind that comes from having an expert on your side throughout the sales process.
Selling your lottery payments is possible, and it doesn’t have to be a long, draw-out process if you follow the tips above.