Structured Settlements are tax-free annuities that provide payment options to the Claimant
Payout options can accommodate future needs such as:
Supplemental Income
College Funds
Retirement Income
Payments to a Trust
Lump Sums for future expenses
TAX FREE PAYMENTS, HOW?
In order to place a qualified annuity (structured settlement) the following criteria must be met:
Both the claimant and defendant must agree on it at the time of settlement
The claimant must have damages from a physical injury or sickness
The claimant must agree to the fixed future payments and has no ability to accelerate, defer, increase or decrease the payments
The defendant (or its insurer) or by their Assignee assumes the defendant’s periodic payment obligation under IRC Section 130
The Assignee then funds the periodic payment obligation with an annuity that is designated as a structured settlement from their affiliated life insurer