Secure your future!
Our Structured Settlement Specialists help families and individuals guarantee their future! Our tailored life plans will eliminate risk so you know the money is there and waiting for life’s most important events.
Settlement Solutions
MISSION
Our mission is to advocate for innovative settlement solutions that address the immediate and future needs of all parties involved in personal injury litigation.
Vision
Our vision is to collaborate with litigation professionals to ensure that injured parties and their families receive secure, guaranteed financial settlement solutions, ultimately facilitating closure for all involved parties.
Strategy
We achieve this by offering creative periodic payment solutions through structured settlements, providing long-term financial security for personal injury claimants and their families. Our approach ensures that the injured party's future needs are met, while allowing the payor/defendant to close their file and eliminate the risk of trial.
Collaboration
We partner with litigation professionals to provide creative settlement solutions that prioritize the security of the injured parties and their families, leading to closure in the litigation process.
Effective Settlement Tools
We promote the use of effective settlement tools, such as structured settlements and special needs trusts, to resolve litigation in a manner that is financially advantageous for all stakeholders involved.
Innovative Solutions
We offer innovative settlement options that provide guaranteed peace of mind, security, and closure for all parties involved in the litigation process.
History
The Periodic Payment Settlement Act of 1982 (P.L. No. 97-473) introduced specific tax regulations to encourage the use of structured settlements in resolving physical injury cases. Section 104(a)(2) of the Internal Revenue Code stipulates that the full amount of structured settlement payments is tax-free for the payee. Conversely, investment earnings on lump-sum payments are typically fully taxable.
To safeguard the injured party, Congress established Section 130, which outlines the requirements to establish a qualified assignment, including:
- The assignee assumes the liability from the defendant and/or its insurer.
- Both the injured party (and their attorney) and the defendant agree that the payment schedule cannot be "accelerated, deferred, increased or decreased."
- The payment stream may be excluded from the recipient's gross income for tax purposes.
- The injury must be a physical sickness or injury.
- A highly secure funding asset must be used to fund the periodic payments
Structured settlements are an ideal option for a variety of cases, including those involving individuals with temporary or permanent disabilities, guardianship cases for minors or individuals found to be incompetent, workers' compensation cases, wrongful death cases, and severe injury cases that require long-term medical care and support. According to independent surveys, the more serious the injury, the more likely structured settlements will be a part of the settlement plan.
Our structured settlement specialists are dedicated to assisting injured individuals in navigating the often complex settlement process and educating them on structured settlements.
Our settlement consultants are available to discuss your needs and goals for resuming your life after your injury. They will explain what structured settlements are and determine if they are suitable for meeting your specific needs. With flexible payment designs, structured settlements can be tailored to meet a variety of needs.
Furthermore, our structured settlement consultants can assist both plaintiff and defense attorneys in drafting settlement documents that comply with the Tax Code provisions governing structured settlements and ensure the tax-free or tax-deferred nature of the periodic payments.
Structured settlements offer several benefits, including security, tax treatment, flexible payment design, and spendthrift protection. The security of structured settlements comes in two forms: a dependable cash flow that is less volatile than other investment options, and the confidence that payments will be made as scheduled. Additionally, structured settlements are tax-free under 104(a) of the Internal Revenue Code for personal physical injury claims, workers' compensation claims, and some disability claims. The flexible payment design of structured settlements allows for a variety of options, such as period certain payments, life only payments, joint life payments, and future lump sum payments, with the ability to begin payments immediately or defer them to a later date. One of the most significant benefits of structured settlements is spendthrift protection, which provides a steady income for severely injured claimants who need assurance that their income will always be there.