What is it?
structured settlement is a single or series of future
tax-free payments accepted as part of a settlement in
addition to, or instead of, an up-front cash payment.
future payments can consist of one or more of the following:
single lump sum payment made in the future. Examples:
education, retirement, purchase of a home or future
- A series of future payments.
Examples: annual payments for college, monthly payments
for income replacement or future care costs or payments
every five years for reinvestment or major expenditures;
Periodic payments for the life of the annuitant
to insure that he/she has income and/or care payments
for as long as he/she is living. Payments for life eliminate
the major risk of outliving one's resources.
- Purchase of the
annuity directly by the defendant/insurer so that the
future payments are tax-free to the claimant. In certain
instances a court-supervised trust can be used to eliminate
the participation of the defendant/insurer in the purchase
of the annuity;
- A Settlement Agreement & Release
signed by the defendant/insurer as well as the claimant;
assignment agreement assigning the obligation to make
the future payments from the defendant/insurer to the
assignee, which is an affiliate of the life insurance
company issuing the annuity.
Advisors works closely with claimants and their attorneys
in planning for the claimant's future financial needs,
determining the best schedule for the future payments,
obtaining the best pricing in the life markets, documenting
the future payments, assignment and annuity in the release
and preparing and submitting the paperwork for the annuity.
Click here for more
details on the structure of a settlement that includes
future tax-free payments.