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
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