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How to Sell Lottery Payments and Get Cash Fast

Congratulations – you won the lottery! You probably have enough money to last the rest of your life. However, winning the lottery is not the end of the process. You need to make a decision about how you will receive your winnings. There are two options for winners – receiving the cash in a single lump sum payment or in annual annuities.

If you make the choice to receive the money in payments rather than a lump sum, then you are receiving a fixed amount of money per year. Many people choose annuity payments to support their long-term financial security; however, when circumstances in life change then this arrangement stops working for the recipient.

If you need more money due to a sudden financial issue or an investment opportunity, there are ways to get access to winnings now. In many states it is possible to sell all or part of your winnings. Read this guide to learn more about if you can sell your payments and the steps required to get cash now.

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Common Reasons for Selling

If you are lottery winner who selected to receive annuity payments after winning, you have options if you need to access cash. Your payment schedule should not restrict you – you have options to get cash more quickly than your schedule allows. You can cash in your payments and receive a lump sum payment through a buying company. When life brings the unexpected and you have a need for cash, you may be in a position to sell your lottery winnings and get access to the funds you need. The needs might include unexpected expenses from a medical emergency to an investment opportunity that requires funds now. Either way, you can access the funds you need in a few basic steps. Read on to learn how.

Sell Your Lottery Winnings in Four Simple Steps

Get a Quote

Accept Offer

Court Review and Approval of Sale

Receive Cash

What to Look for in Your Purchasing Company

If you have decided to sell your lottery winnings, you need to know how to find a reputable company. There are many purchasing companies in the market. Before you decide to work with a company, you should check whether they are certified and licensed. It is also good to check how long the company has been in business.

In the process of requesting a quote, make sure that it is clear how long the quote is valid for and whether there are additional fees. Pay careful attention to how the buying company’s representatives treat you during the quote process. Are you given time to ask questions? Do the company’s representatives demonstrate they want you to fully and clearly understand the process? These are the signs of a company that puts the customer first. Some companies rely on putting an enormous amount of pressure on potential sellers, but you do not want to work with one of these companies. Remember – you are in charge!

Why Your Quote is Less than the Total Value

It is important to know that when you sell your payments you will not be receiving the full amount of your winnings. This is the price that you pay for getting access to your cash now. The amount you receive less than the value of your payments is called the discount rate. Unlike when you are shopping at a sale, you want to look for the lowest possible discount rate. A good buyer will be completely transparent about their quote and clearly show the discount rate and any other fees involved in the transaction.

Final Step – Court Approval

When you are ready to accept a quote from a buyer, you will officially accept an offer from them. The buyer should then support you to file for court approval of the sale. This will require a court appearance from you, the seller, during which the judge will review the terms of the sale and make sure that the transaction is done in a manner which is in your best interest.

Get cash for your lottery winnings rather than waiting for a monthly payment. Find out more about how to convert your payments into cash in this easy to use guide.

Selling Lottery Payments

When you win the lottery, you generally have a choice between a long-term payment plan and a one-time payout for your winnings. If you chose a long-term payment plan in the form of an annuity and it isn’t working for your anymore, we may be able to help you sell your lottery payments for an immediate lump sum of cash.

What Are My Lottery Payout Options?

  1. Lump Sum — Take the entire amount of your lottery winnings in one lump sum payment. Winnings are taxed in accordance with federal income tax laws for the year the lottery was won and the money was received.
  2. Annuity — Long-term payout agreement. Annuities provide recipients with consistent, scheduled payments over a period of time while generating interest on the funds in the annuity.

If you decided to elect an annuity as your payout path and are considering selling your lottery payments for a lump sum of cash, we’re here to help.

What Are The Differences Between Lump Sums and Annuities?

With a lump sum, you receive the total amount in one payment. With an annuity, you are paid out over a period of time.

  • Annuities may have stipulations that limit winners from changing the payout conditions in the case of an unexpected family emergency or financial crisis.
  • The scheduled payments may prevent a winner from making large investments. Such investments can potentially generate more cash compared to the amount of interest earned on the annuities.

Do Annuity Lottery Payouts Have Better Tax Benefits?

Lump sum recipients’ winnings are treated the same as any other income, and are therefore subject to income taxes on the total amount at the rate of that particular tax year. This means some lump sum recipients may find themselves in a higher tax bracket. With annuities you are generally taxed on the amount received in any given year. You should speak with a financial advisor or tax professional when decided which option is best for you.

Can I Sell My Lottery Payments?

Contact your lottery company to determine if your annuity can be sold. If it can be, keep in mind the following considerations:

  • Currently, not all states allow aftermarket sales of lottery annuities for a lump-sum payment, so double check with the state you live in and the state the ticket was sold in.
  • You negotiate and determine the terms of sale — sell all or part of your future payments.
  • Court approval is required for the transaction to take place. A judge makes the final determination for whether or not such future payments can be sold.

How Do I Sell My Lottery Payments?

Selling your lottery payments is possible if you meet the criteria and take the right steps. In order to sell your lottery annuity payments, you will need to do the following:

  1. Reach Out to a J.G. Wentworth Representative
  2. Get a Quote for Your Lottery Annuity Payment Sale
  3. Accept the Lump Sum Offer for Your Payments
  4. Receive Court Approval for the Transaction
  5. Receive Your Cash in a Lump Sum

Will I Owe Taxes if I Sell My Lottery Payments?

When you cash in on some or all future lottery payments, it is considered a taxable event. Taxes are withheld from the amount distributed to you according to applicable tax laws.

What Happens to My Lottery Annuity If I Pass Away?

Lottery annuities may allow payments to be passed to the winner’s heirs when the annuity owner dies. In that event, your inheritor(s), whether beneficiary individuals or in the form of an estate, will receive any remaining payments.

Learn more about lottery winnings and be on your way to getting your cash sooner!