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FAQ

Frequently Asked Questions about Stone Street Capital’s Annuity Liquidity Program™

  • Q:
  • What is Stone Street Capital’s Annuity Liquidity Program?
  • A:
  • In a nutshell, we provide up-front money to your clients for their annuities by purchasing the future payments of the annuity.
  • Q:
  • What are the primary reasons a client may want to liquidate their annuity?
  • A:
  • The reasons are as diverse as your clients are. Many clients need up front money in order to manage:
    • Estate Planning and Wealth Transfer
    • Changes in Retirement Planning
    • Investing in Alternative Insurance Products that Match Risk
    • Cashing Out Inherited Annuities
    • Any Immediate Financial Needs
    • A desire to better position assets for transfer to heirs
  • Q:
  • Can you cash out a portion of the annuity?
  • A:
  • Yes. Options are available to purchase only some of the annuity payments.
  • Q:
  • Can you cash out an annuity that has already been making payments?
  • A:
  • Yes. Even if the annuity is paying out to the client, we can provide cash for some or all of the remaining payments.
  • Q:
  • How long does it take for my client to receive money?
  • A:
  • Every transaction is different, but usually it is within 2-4 weeks.
  • Q:
  • Do you purchase variable annuities?
  • A:
  • No. We purchase fixed annuities, either immediate or deferred. If the annuity is deferred, it must be past the accumulation period. Also, we do not purchase annuities with a qualified tax status.
  • Q:
  • Is this a viatical or life settlement product?
  • A:
  • No.
  • Q:
  • Is there any commission recapture on the sale of the original annuity?
  • A:
  • No. Because the annuity stays in tact and it is simply a transfer of ownership, there is no recapture of commissions.
  • Q:
  • Are there any surrender charges?
  • A:
  • No. This is not a surrender of the annuity, but a transfer of ownership.
  • Q:
  • Are there taxes on the money from cashing in an annuity?
  • A:
  • Yes. The tax consequences are usually the same as if the annuity were surrendered. Like any source of income, United States tax law states that any gains incurred as a result of cashing in an annuity may be subject to income tax. Also, if the annuity owner is of the age 59 1/2 or younger when the annuity is cashed in, there may be a 10% federal tax penalty. It’s most important to realize that every person’s tax situation is different – and only a registered tax advisor can provide tax advice. Because taxes are paid on an annuity whether it is cashed in or not, it’s important to have the facts. We do not provide financial or tax advice and urge anyone considering this option to consult their own financial and tax advisor.
For more about our Annuity Liquidity Program™, please call (800) 351-5207.

Disclaimer: We do not purchase variable annuities, or annuities with enforceable anti-assignment provisions. All purchases subject to applicable law. We do not provide tax or investment advice. You should consult your own attorney, accountant and tax advisor regarding any sale of an annuity.