A non-qualified assignment offers claimants in non-physical injury cases the opportunity to place a portion of the settlement proceeds in a structured settlement. Like other structured settlements, a non-qualified structured settlement is a type of financial agreement in which a portion of an individual's settlement award is used to fund a long-term stream of payments, instead of a lump sum payment. 

Unlike qualified structured settlements in physical injury cases, which are tax-free, non-qualified structured settlements are taxable. Thus, if your settlement does does qualify for tax-free treatment, it may be in your best interest to defer a portion of your immediate tax liability on your settlement proceeds via a non-qualified structured settlement. 

Non-qualified structured settlements may provide more flexibility and customization options for the individual, but it is important to understand the potential tax implications before entering into this type of agreement.

Why utilize a non-qualified structured settlement annuity?

1. Deferred tax: The deferred amount going into a non-qualified structured settlement is not taxed immediately, which allows for pre-tax growth.

2. Spread out tax liability: You only get taxed on the amounts you receive in future years.

3. Create a stable, long-term source of income in the form of guaranteed payments.

It is important to consider the potential tax implications and the impact on future payments before entering into a non-qualified structured settlement annuity.

Types of Claims

Non-qualified structured settlements can be used in a number of different non-physical injury claims, including:

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