IF YOU DECIDE TO GO THROUGH WITH THE STRUCTURED SETTLEMENT TRANSFER
The first thing you will need to do is prepare a written plan for the allocation of your structured settlement funds. Say for instance you want to start a new business. You will need to have a business plan or model which outlines how you plan on setting up your business. Remember you are going to have to go to court for approval of any transfer and documentation is a key ingredient to any plan.
I cannot stress enough how key it is to have a written plan of action for any proposed structured settlement transfer funds allocation. Remember you are using future monies. You have to be able to show how using the structured settlement funds now, as opposed to waiting for the monies to come in later is the best option for you. Just saying you have living expenses or want to off pay bills is not enough. You need to take the time to affix a certifiable value to each item in your plan. Here is an example of breaking down your funds allocation.
If approved, I will receive $52,000.00 from this transaction. Of the monies I receive, I will use $40,000.00 to be used as a down payment on a new home. I will provide the court with documentation regarding the listing and price of the homes I am interested in buying at the time of hearing. I will use $10,000.00 to purchase a newer vehicle. I will provide the court with documentation regarding the purchase price of the vehicle at the time of hearing. I will use the remaining $2,000.00 to purchase auto insurance for my vehicle. I will provide policy information and documentation regarding the purchase of auto insurance at the time of hearing.
This is a basic example of a plan with documentation that you can use to verify your expenditures of your structured settlement funds to the court with backup support information. The importance here is that you can show the court a well thought out plan that has verifiable support documents.
No matter what you plan to use the structured settlement money for, having documents to support your plan is extremely important. The documents provide both you and the court tangible evidence of your proposed use of the funds being transferred.