I am considering selling my portion of a living trust to J.G. Wentworth...

Question

Does this sound like a terrible mistake?

Answer 1

It depends on how badly you need the money. The settlement from the Wentworth company will likely be very much less than the total you will receive from the trust ,should you keep it.

Based on your additional comments and more research, it seems exact figures are hard to find. However, a figure of 20% seems to be commonly used. If you have a trust that will pay a total of $1 million, by using a settlement company, and considering all the fees, taxes, etc, you may get $200,000. Hardly a good arrangement, unless you have a very important immediate need for cash and are willing to forgo a much longer guaranteed income that will eventually pay 5 times as much.

Answer 2

This is akin to getting a payday loan. You'd be very foolish to sell out your trust. JG Wentworth is in the business of making money, and what they'll take as a percentage is certainly going to be enough for JG and Co. to stay in silk suits, drive Porsches, yachts, fine dining, corporate jets, etc. Get the picture??? To answer your question, YES, it would be a terrible mistake!