1. Review the Somerset Offer Sheet, and then contact your advisor to reserve the offer.
Once you verbally reserve the offer, Somerset takes the case off the market and holds it exclusively for the Buyer. To maintain the exclusive hold, the Buyer has 48 hours to return the required documentation.
Required documents to exclusively hold a Case:
2. Fill out the Purchaser Information Worksheet-
To comply with all federal laws and regulations and to help fight the funding of terrorism and money laundering activities, Somerset must obtain, verify, and record information that identifies the Buyer via the Purchaser Information Worksheet
To be eligible to buy a SMA, a foreign Buyer must have a U.S. address, a U.S. tax identification number, and a U.S. Bank account.
3. Upon receipt of the Purchaser Information Worksheet, Somerset will prepare and send out a Purchase Agreement for the Buyer(s)signature.
The Purchase Agreement outlines
the terms of the relationship between the Buyer and Somerset Wealth Strategies
the transaction process – generally a $5,000 deposit in earnest is sent back with the executed documents. If the case is considered Fast Track – going to court within 15 days or less or already approved, full funding is required.
that deposits will be held in a specified attorney-trust account
Note for SMA’s to be funded with Qualified (IRA funds), additional action is required.
4. Funds need to be transferred to an approved custodial account set up with Provident Trust Group.
If the account is already established, Somerset will send out with the Purchase Agreement (this can take up to four weeks to complete the transfer):
New Transfer Form – to transfer funds into Provident sufficient to cover the Provident Fees and the Purchase Price of the SMA
Provident Direction of Investment Form – to transfer funds from the Provident IRA to the Attorney Trust account and fund the specified SMA.
If the account is not already established, Somerset will send out with the Purchase Agreement (this can take up to four weeks to complete):
Provident IRA Application
New Transfer Form
Provident Direction of Investment Form
Buyer Notification
5. Once Somerset receives the executed Purchase Agreement and the required deposit, the Buyer can expect to wait for final closing anywhere from 30 – 90 days due to the court ordered and judicial process these SMA follow.
6. Somerset notifies the Buyer of the progress of the SMA throughout the court process, including court date, approval date and time it will take for Insurance company acknowledgement.
Fund the SMA Purchase
7. Stage 1: Initial deposit provided at the time the Buyer executes the Purchase Agreement. The deposit is held in the attorney trust account specified in the Purchase agreement.
8. Stage 2: The Buyer submits the balance of the SMA purchase price to the Buyer’s attorney trust account 15 days prior to the court date, where the funds are held until the closing of the transaction.
Closing the SMA Purchase
9. Once the court has reviewed and approved the assignment and we have received confirmation from the insurance carrier that the assigned payment(s) are now to be paid directly to the Buyer, our team of legal experts will underwrite the file based upon a set criteria to assure the Buyer is receiving an absolute assignment without encumbrance. (Typically a week to four week process)
10. Upon receipt of an attorney reviewed file, the case will be funded and considered closed.
11. Upon closing, the Buyer receives a Buyer Closing Book which includes all of the pertinent documents and proves the transfer from Buyer to Seller.
Total time the Buyer can expect this process to take is 30-60 days.
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