Illinois Law: Selling Structured Settlement Payments
If you are considering selling your future structured settlement payments for an immediate lump sum in Illinois, it's important to understand the laws surrounding this type of transfer. In addition to federal law, 49 states have their own laws that govern the process of transferring the rights of a structured settlement annuity.
Illinois Structured Settlement Law
In Illinois, the law surrounding the transfer of rights to future structured settlement payments is the Structural Settlement Protection Act.
No direct or indirect transfer of structured settlement payment rights shall be effective and no structured settlement obligor or annuity issuer shall be required to make any payment directly or indirectly to any transferee of structured settlement payment rights unless the transfer has been approved in advance in a final court order based on express findings by such court that:
(1) the transfer is in the best interest of the payee, taking into account the welfare and support of the payee's dependents;
(2) the payee has been advised in writing by the transferee to seek independent professional advice regarding the transfer and has either received such advice or knowingly waived in writing the opportunity to seek and receive such advice; and
(3) the transfer does not contravene any applicable statute or the order of any court or other government authority. (Source: P.A. 99-286, eff. 8-5-15.) (215 ILCS 153/20).
Click here to read the full Illinois law.
CrowFly is committed to creating a positive experience that is built on trust, accessibility, and transparency for people who have structured settlements.
To sell your future structured settlement payments, you'll need to comply with both state and federal law. These laws are in place to protect you.
In 2001, Congress enacted the Victims of Terrorism Relief Act, which includes a provision relating to structured settlement factoring transactions (26 U.S. Code § 5891). This provision imposes a high excise tax on structured settlement factoring transactions unless the transactions are “approved in advance in a qualified order.” The Act defines a qualified order, and it requires that the order be issued “under the authority of an applicable State statute by an applicable State Court.” Since then, 49 states and the District of Columbia have enacted state statutes setting for the procedures for court approval of structured settlement factoring transactions.
Qualified order. --For purposes of this section, the term “qualified order” means a final order, judgment, or decree which--
(A) finds that the transfer described in paragraph (1)--
(i) does not contravene any Federal or State statute or the order of any court or responsible administrative authority, and
(ii) is in the best interest of the payee, taking into account the welfare and support of the payee's dependents, and
(B) is issued--
(i) under the authority of an applicable State statute by an applicable State court, or
(ii) by the responsible administrative authority (if any) which has exclusive jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement.
26 U.S. Code § 5891 also offers some helpful definitions and other rules for selling structured settlement rights. Read the full law here.
We have a few articles that might be helpful if you are considering selling your structured settlement payments:
- How to sell your structured settlement
- Do you have a good enough reason to sell your structured settlement annuity payments?
- CrowFly average discount rate (or how we get sellers more money)
Transferring the rights to your future payments is permanent, and it's not the best choice for everyone. We encourage you to speak with a financial expert about your asset and to weigh all your options if you are in need of immediate cash.
If you are interested in becoming an investor in a structured settlement payment, you need a team who knows how to help you get the best deal. That team is CrowFly. When you need to sell your structured settlement payments, you need a team who knows how to help you get the best result. That team is CrowFly.