The Periodic Payment Settlement Act (PPSA) sets baseline protections for structured settlement transfers nationwide. Internal Revenue Code § 104(a)(2) preserves tax-free treatment for qualifying personal injury payments. Court review typically takes 35-45 days. Learn more about court approval, state laws, or the info hub.
Every state in the United States has specific laws governing structured settlement transfers, designed to protect payees and ensure fair transactions. These laws, often called Structured Settlement Protection Acts (SSPAs), establish requirements for court approval, disclosure, and transfer procedures.
State structured settlement laws typically require that transfers be approved by a court, which must determine that the transaction is in the payee's best interest. Courts consider factors like the payee's financial situation, the terms of the transfer, the discount rate being applied, and whether the payee has received adequate legal and financial advice.