WHAT IS A STRUCTURED SETTLEMENT?
A structured settlement is a voluntary settlement reached between a plaintiff and a defendant beneath which the plaintiff/claimant receives compensation for an harm, or fallacious doing. Structured settlement annuities permit claimants to obtain a stream of assured funds designed to satisfy their particular wants.
TWO TYPES OF STRUCTURED SETTLEMENTS
Tax-Free Structured Settlement (Bodily Damage)
Bodily harm settlements might be designed in such a technique to place a portion of the proceeds of the structured settlement into an annuity to supply 100% tax-free funds. Annuities are positioned with probably the most extremely rated life insurance coverage firms accessible and supply unparalleled safety in your shoppers.
Taxable Structured Settlement (Non-Bodily Damage)
The taxable structured settlement annuity applies most of the identical options of a tax-free structured settlement annuity to a variety of circumstances offering assured and dependable funds with a aggressive fee of return on a tax-deferred foundation to the claimant.
BENEFITS OF TAX-FREE AND TAXABLE STRUCTURED SETTLEMENTS
The complete quantity of the harm cost(s) is tax-free, exempt from federal and state revenue taxes beneath 104(a) of the IRS codes.
The claimant receives funds from one of many most secure investments accessible: A extremely rated life insurance coverage firm annuity.
The claimant receives the advantage of tax-deferral on their funds together with aggressive charges of return.
The claimant receives periodic funds when wanted as decided on the time of the settlement.
HOW THE SETTLEMENT PROCESS WORKS
TAXABLE STRUCTURED SETTLEMENTS ARE USED IN THE FOLLOWING CASES:
- Structured Installment Gross sales
- Employment Points
- Age, Gender, or Race Discrimination
- Legal professional Payment Deferrals
- Divorce Settlements
- Environmental Litigation
- Sexual Harassment
- Authorized Malpractice
- Property Disputes
- Breach of Contract
- Fraud Claims