subject: Let's talk about an Independent Professional Advice [print this page] Independent Professional Advice (IPA) can be independent legal advice provided by a lawyer, or it can be provided by another professional such as an accountant or financial expert. IPA is recommended to those contemplating selling theirstructured settlementor annuity payments before the transaction is completed.
In some states, an IPA is required to make sure the annuitant (seller) is aware of what they are doing and to make sure that the seller has thought about whether the transaction is in his or her best interest. In most states an IPA is highly recommended, but it can be waived if the seller chooses not to get it.
The following states require independent professional advice for the annuitant:
- Alaska
- Delaware
- Louisiana
- Maine
- Maryland
- Minnesota
- North Carolina
- Ohio
Independent Professional Advice could be provided by an attorney, accountant or financial planner. According to Shawn Richmor, COO of Strategic Capital, an IPA usually does not cost more than $500, and it is the seller's responsibility to cover the cost of their IPA. However in the state of California, if the annuitant (seller) would like to get IPA, then the factoring company is obligated to reimburse the annuitant up to $1,500.
In a structured settlement transaction, usually one of the documents that the seller is asked to sign is a form that gives the seller the option to waive or obtain IPA. If the seller gets IPA, then the seller must provide the contact details of the professional that gave the IPA. If the seller waives getting IPA then he or she will just say that on the form. And then the court order will confirm whether or not the seller obtained IPA or waived it.
An IPA will cost the seller some money, but getting an IPA is a good idea and it is helpful to those selling their future structured settlement payments.
Let's talk about an Independent Professional Advice
