The 4-1-1 on Maryland Structured Settlements

Maryland is known for being one of the more heavily-regulated states when it comes to guidelines for selling future structured settlement payments. Maryland structured settlement law addresses rules about jurisdiction, court hearing timeline, liability, and more.

Under Maryland’s structured settlement law, structured settlement payments will not be made without authorization from an appropriate Maryland court. No authorization = no payments. To authorize the transfer, the court needs to find that certain facts are true:

  • The transfer is necessary, reasonable, or appropriate.
  • Transferring rights is not expected to create a future financial hardship for the seller and his or her dependents.
  • The seller received independent professional advice about what the transfer will mean.
  • The transferee shared with the seller the discounted present value. 

Let’s unpack that. Under Maryland law*, independent professional advice refers specifically to the advice of an attorney, a certified public accountant, actuary, or another licensed professional adviser. Discounted present value refers to the fair present value of future structured settlement payments using an IRS figure meant to approximate the loss of value due to inflation and other factors. That value is determined using the IRS’s most recently published applicable federal rate for determining the present value of an annuity.

So, really Maryland is saying that a judge has to confirm:

  1. This is a good financial choice, 
  2. This isn’t a bad deal (or “pennies on the dollar”),
  3. A professional advised you, and
  4. You have clear, accurate information.

Crowfly agrees that you should make sure all of these are true. We created a first-of-its-kind platform where sellers are respected, get clear, timely, and accurate information, and always receive a fair market value for their assets. We advise potential sellers not to request a transfer when it isn’t the best option or they don’t have significant need. We even provide a free, no-hassle estimation tool right on our homepage to make it easy. Try it out! 

Read More: 3 Questions to Ask Before You Sell Your Structured Settlement for Cash

The Structured Settlement Transferee Registration Unit of Maryland’s Office of the Attorney General approved our company’s application for registration as a transferee in the state in 2019, officially making us a registered Maryland Structured Settlement Transferee. We welcome you to call us at 833-CROWFLY to learn more.


*Crowfly offered advice on Maryland structured settlements in this article and wishes to make clear that while the content covered legal elements, this was not professional legal advice.