Non-Qualified Structured Settlements

FOR ATTORNEYS

Protect Clients from Excessive Taxes

Don't let taxes erode your client's recovery. Partner with our specialists to design a custom settlement plan that minimizes tax liability and maximizes long-term financial stability.

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Attorney’s Guide to NQSS

A Practical Resource for Navigating Taxable Settlements in 2026

WHAT IS A TAXABLE SETTLEMENT?

UNDERSTANDING THE ISSUE

Non-physical injury cases and settlements are taxable to the plaintiff.

TYPES OF TAXABLE CLAIMS:

Employment litigation (e.g., wrongful termination, sexual harassment, discrimination, and mental anguish)
Construction defects
Contract disputes
Punitive damages
Environmental claims
D&O and E&O claims
Interest on a judgment

WHAT IS A NON-QUALIFIED STRUCTURED SETTLEMENT?

A Non-Qualified Structured Settlement reduces taxes by spreading payments over time

Unlike tax-free physical injury awards, non-physical injury settlements are typically taxable. A Non-Qualified Structured Settlement helps manage this burden by spreading payments over time. Because funds are directed into the settlement pre-tax, you benefit from pre-tax interest accrual, effectively minimizing your immediate tax hit and preserving more of your award for the future.

THE SOLUTION

WHY UTILIZE A TAXABLE STRUCTURED SETTLEMENT?

Choosing a taxable structured settlement provides several strategic financial advantages:

STRATEGIC ADVANTAGES

Tax deferral strategy allowing settlement funds to grow pre-tax

Tax Deferral & Pre-Tax Growth:

By directing funds into a non-qualified assignment, your settlement grows pre-tax, allowing you to maximize investment gains before Uncle Sam takes a cut.

Structured settlement payments spread out to reduce tax liability

Reduced Tax Liability

Spreading payments over several years can prevent you from being pushed into a higher tax bracket, keeping more money in your pocket.

Structured settlement providing stable long-term guaranteed income

Guaranteed Future Income:

Replace a volatile lump sum with a stable, long-term stream of guaranteed payments tailored to your financial needs.

Note: Before entering into a non-qualified structured settlement annuity, consult with a professional to understand the specific tax implications for your case.