What is it, and why do i need it? When it comes to structured settlement transfers and the secondary market annuities an independent professional advisor is not just a suggestion in some states. Some factoring companies have a form you can sign waiving your rights to an independent professional advisor.
In fact the concept of independent professional advisor is simply to look after the best interest of the seller of the structured settlement. Now this does not mean the seller does not know what is in their best interest, simply put it's like taking a expert loan negotiator with you to buy a car. When a person is involved in a transaction that involves a large sum of money, they tend to over look details. It's human nature. Except when it comes to the secondary market annuities, you really need someone who has experience and knows what the judge will be looking for.
All judges in the transfer of structured settlements are required by law to act in the best interest of the seller. Even if it means denying the deal. The Attorney representing the purchaser can not argue on behalf of the seller, it is a conflict of interest.
With the overload of cases these judges see every day, they do not always have the luxury to review the case thoroughly, it's easier to just deny the transaction than to investigate the best interest. That is why they established the role of the independent professional advisor. It is an effort to unload some of the burden off of the courts and shift it back onto the purchaser of the secondary market annuity.
The courts have also implemented a standard fee, to be paid by the purchaser, which has been calculated into the purchase price, whether the purchaser chooses to use it or not.
It is not the intent of this article to advise you of who to choose if you are selling a structured settlement. It is solely meant to inform you of what is available to you.
Choosing a independent professional advisor is something, only you can decide.
Private investors purchasing secondary market annuities from factoring companies can benefit from an independent professional advisor review of the purchase as well.
Both of these i will try to address in future articles.