---
title: Can I invest in structured settlements?
description: A structured settlement is a tool utilized in the resolution of personal, physical injury claims. In certain circumstances, the annuity owner may then sell all or a portion of his/her future income st
---
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# Can I invest in structured settlements?
A structured settlement is a tool utilized in the resolution of personal injury claims. In certain circumstances, the annuity owner may then sell all or a portion of his/her future income stream for a lump sum payment.
**Getting started**
You may direct your IRA to purchase structured settlements or payment streams from secondary market annuities. Please refer to our [Investment Checklist for Structured Settlements](https://www.stratatrust.com/resource-center/forms/#structured-settlement-investment-checklist-and-forms) for more details.
Required documents:
- Settlement Agreement: Provide a copy of the settlement agreement that outlines the payment terms.
- Purchase and Sale Agreement and the Assignment: The Purchase and Sale Agreement and the Assignment must reflect the assignor as Strata Trust Company Custodian FBO (Accountholder Name) IRA (Account #). STRATA will sign as the IRA Custodian after the Accountholder has signed.
- Court Order: Provide a copy of the court order approving the assignment of annuity payments to the IRA. Please include all pages of the document.
- Amortization Schedule: If periodic payments consist of principal and interest, please provide an electronic copy (.xls or .xlsx) of the amortization schedule. View a sample [Amortization Schedule Template here.](https://knowledge.stratatrust.com/hubfs/Amortization_Template_12.8.25.xlsx?hsLang=en)
**How do payments work?**
Since your IRA purchased the structured settlement and is the registered owner, all payments must be deposited into your IRA to maintain its tax-deferred or tax-exempt status.
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STRATA Trust Company (“STRATA”) performs the duties of a directed (passive) custodian, and as such does not provide due diligence to third parties regarding prospective investments, platforms, sponsors, dealers or service providers. As a custodian, STRATA does not sponsor, endorse or sell any investment and is not affiliated with any investment sponsor, issuer or dealer. STRATA does not provide investment, legal or tax advice. Individuals should consult with their investment, legal or tax professionals for such services.