Structured Settlements

What is a structured settlement?

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


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