A structured settlement annuity allows claimants in personal injury, wrongful death, or worker’s compensation cases to receive all or a portion of their settlement in a series of tax-free periodic payments. Structured settlement annuities provide additional advantages beyond tax exclusion, offering guaranteed payments and guaranteed rates of return.

The decision to utilize a structured settlement must be made before finalizing the settlement agreement. Mechanically, the insurer or defendant pays settlement funds to a third-party assignment company, which assumes the liability and purchases an annuity from a structured settlement carrier. The carrier then makes a series of pre-determined periodic payments designed to meet each claimant’s future needs.

Guarantees are subject to the claims-paying abilities of issuing insurance company.

Used as an alternative or in conjunction with life-insurance based structured settlement programs, market-based structured settlements provide both claimants and attorneys with the opportunity to receive tax-free or tax-deferred income while also taking advantage of market-based growth potential. Market-based structured settlements allow considerable flexibility to allow for individualized planning.

For cases that do not qualify for income tax exclusion by way of a traditional structured settlement and do not fall under Section 104 of the Internal Revenue Code, non-qualified structured settlements serve as an alternative option that also provide guaranteed payments and can create a stable source of income. Eligible cases include employment litigation, contract disputes and punitive damages. In these structures, the claimant receives a series of periodic payments and is liable only for taxes on the funds received within a given tax. Meanwhile, the pre-tax settlement funds continue to earn interest.

Guarantees are subject to the claims-paying abilities of issuing insurance company.

Plaintiff attorneys, and other contingency fee-based attorneys, may place all or a portion of their fees into tax-advantaged investments. By electing to defer fees, an attorney also defers the tax obligation until the year in which payments are received.

Attorneys may elect to utilize life-insurance based structured settlements offering fixed payments and fixed rates of return or choose to take advantage of market-based structured settlement.

Payment start date restrictions may vary by issuing insurance company.

It may be in the plaintiff’s best interest to place all or a portion of their settlement proceeds into a trust. There are various types of trusts available tailored to accommodate the claimant’s needs. Our team will assist with eligibility requirements, selection of suitable trust types, and provide access to a national network of trust attorneys and trustees.

Qualified Settlement Funds, commonly known as 468B Trusts, serve as a useful tool in the settlement process allowing additional time to properly resolve mass tort litigation and other cases involving multiple claimants. Establishing a QSF allows the defendant to make a payment into the Trust for full and final Release of the claim. Our team provides assistance throughout the entire process from establishment and administration to disbursement, whether that feeds into a structured settlement or alternative investment.

Our team will examine eligibility status and provide solutions to preserve claimant’s qualification for government benefits while receiving settlement proceeds; an event which can have significant financial implications. Needs-based government benefits use income and asset tests to determine eligibility and even a small settlement amount may be sufficient to render a claimant ineligible for most needs-based government benefits.

Mass tort cases often prove to be complex, long-term and involve ever-evolving compliance requirements, ethic rules, and legal and regulatory issues. Our team partners with industry experts to provide personalized assistance to all claimants involved, ensuring they receive the proper education and support throughout the process.

Our team partners with lien professionals to provide expert lien resolution services for both single claimant and mass tort cases, expediting claimant’s path to receiving settlement proceeds. Unresolved liens prove to be one of the most common delays in the settlement process often stemming from Medicare, Medicaid, private healthcare or Veterans affairs. We will provide the resources and support for a smooth resolution process.

For those who are using or anticipate future use of Medicare benefits, we provide expert guidance for proper use of Medicare Set-Asides or MSAs. These are utilized to incorporate estimated costs of future medical care related to the claimant’s injury and will allow them to continue receiving these benefits once the MSA funds have been exhausted. Oftentimes this results in a material increase in discretionary liquidity for our clients.

After the passing of a loved one, some claimants may be required to go through estate administration procedures in order to receive the distribution of settlement proceeds. Our team works closely with industry leaders to provide expert assistance to help properly administer the estate in a timely and cost-efficient manner.