WHAT IS A STRUCTURED SETTLEMENT?

Structured settlements are a way for plaintiffs to receive their physical injury, wrongful death, or workers' compensation settlements in a series of payments that are not subject to income tax. Structured settlements may also be applicable in non-physical injury cases so that the claimant can get tax-deferred income without taking a lump sum that is fully taxable. 

We can provide you with detailed information about the various structured settlements available, including: 

Fixed annuities

Index-linked annuities

Market-based investments

Growth structured settlements

HOW DOES A STRUCTURED SETTLEMENT WORK?

Prior to the completion of the settlement arrangement, the parties need to reach an agreement on using a structured settlement. Once they have agreed, the claimant discharges the defendant (or the insurer) of liability. The defendant or insurer then sends the structured settlement funds to a third-party assignment company, which assumes responsibility and acquires an annuity or investment from a structured settlement backer. The backer then makes regular payments in accordance with the previously established timeline and amount.

Structured settlements can be offered for almost any size of settlement; we are able to structure amounts as low as $10,000. It is ultimately the claimant's decision whether to structure, and many find that structured settlement is much more advantageous than a single lump sum payment.

BENEFITS OF A STRUCTURED SETTLEMENT

100% Income-Tax-Free for Physical Injury and Wrongful Death Cases:

People who receive compensation for physical injuries or wrongful deaths via structured settlements are entirely free from state and/or federal taxes, as per Section 104(a)(2) of the Internal Revenue Code. 

100% Income Tax-Deferred for Non-Physical Injury Cases:

For non-physical injury cases, the payments (as well as growth) are simply tax-deferred.

Guaranteed Payments*:

The payment schedule is agreed upon at the beginning of the process, and claimants are assured a steady source of secure income with guaranteed payments. 

Guaranteed Rate of Return:

Structured settlement annuity payments have a guaranteed rate of return that cannot be altered, safeguarding the injured party from any market volatility. 

No Overhead Fees or Expenses:

Finally, due to their lack of overhead fees and taxation advantages, structured settlements remain competitive with other traditional investments. 

*These guarantees are contingent on the ability of the insurance company to pay the claims