Tax on Sale of Annuity

[kuleguy34]

I AM AT A FINANCIAL STRAIGHT IN WHICH I NEED TO SELL MY STRUCTURED ANNUITY. IT IS MY FINAL PAYMENT DUE TO ME FROM A WRONGFUL DEATH LAWSUIT OF MY FATHER. IT IS A LUMP SUM PAYMENT AND WAS WONDERING IF OTHER THAN LEGAL FEES IF THERE WILL BE ANY TAX REQUIRED. AS IT IS SET UP, IT IS TAX FREE IF I WAIT UNTILL THE DUE DATE. AND ALSO HOW DO I GO ABOUT GETTING THE MOST FOR IT. KULEGUY IN OREGON

[aaron]

It can happen that a lump sum purchase will result in tax liability. You can discuss this with the company which is offering to purchase your annuity, verifying their representations with your own lawyer or financial professional (e.g., a CPA).