Are you an attorney settling a case for your client?
You've worked tirelessly to reach a settlement that satisfies your client's needs. However, have you considered utilizing a structured settlement to secure your client's future? Structured settlements can provide tax-free payments that are tailored to meet the specific needs of your client, whether it be for future medical expenses, education costs or to replace lost income.
To ensure that your client receives the benefits of a structured settlement, it is important to discuss this option during the negotiation process. Pam and her team are here to help guide you through the process and provide valuable insight into the benefits of structured settlements before the settlement is finalized. Don't miss out on this valuable opportunity to help your clients achieve their future goals and meet their ongoing needs.
Why Structured Settlements Are Recommended for Your Clients
Structured settlements offer a sense of security in two ways. Firstly, they provide a dependable cash flow that is not subject to market volatility. Secondly, they offer confidence in the safety of principal, ensuring that payments will be made as agreed upon.
The tax treatment of structured settlements is also highly beneficial for your clients. According to IRC 104(a) of the Internal Revenue Code, payments received from personal physical injury or sickness claims, worker’s compensation claims, and some disability claims are income tax-free, whether received as cash or periodic payments.
The flexibility of payment design is another advantage of structured settlements. Future payments can be tailored to suit the unique needs of your clients. For instance, if your client loses their ability to work, the payments can be designed to replace or supplement their income.
If they require lifelong care, the payments can be structured to cover that cost. Additionally, if your client is a minor, the payments can be deferred to start when they reach adulthood and can be timed to pay for their education.
How We Assist: Claims Professionals & DEFENSE ATTORNEYS
Structured settlements are a valuable tool for claims departments to expedite case resolution and avoid costly and time-consuming trials. They can be particularly effective in resolving complex cases. Because structured settlement payments are income tax-free and can be customized to meet the needs of the claimant, they can help provide for future income replacement, college tuition, and medical expenses.
Structured settlement consultants can be a vital resource for claims departments. These experts can help navigate the structured settlement process, offer guidance during mediation, and assist in the design and documentation of the settlement plan.
Spendthrift protection is a highly valued benefit of structured settlements, especially for severely injured claimants. Knowing that they have a steady income stream that will always be available provides a sense of financial security that can be difficult to achieve through other means.
Collaborating with a structured settlement consultant, like Pam and her team, can prove to be a valuable addition to your settlement team, providing assistance throughout the settlement process. Alongside discussing structured settlements with your client, they can also evaluate life care plans, economic reports, attend mediation sessions with you, assess proposals during the mediation process, and help with settlement documents. It is crucial to involve a structured settlement consultant early on in your case to ensure that you benefit from their comprehensive services.
Annuitant refers to the person on whose life an annuity is purchased, and they may also be known by other names such as claimant, plaintiff, measuring life, employee, releasor, or injured party. An annuity is a contract issued by a life insurance company to fund fixed, periodic payments that an individual will receive either for their lifetime or for a certain period of time.
An assignee is a third-party company that accepts assignment from the defendant or its liability insurer of the obligation to make the periodic payments outlined in the settlement. They act as the owner of the annuity contract, according to Section 130(c), and may also be referred to as an "Assignment Company." An assignment agreement is a legal document that transfers the obligation to make periodic payments from the defendant's liability insurance carrier or self-insured defendant (assignor) to a third party (assignee). The most commonly used and accepted assignment agreements are the Uniform Qualified Assignment (UQA) and Non-Qualified Assignment Agreement and Release (NQAR).
What kind of flexibility do I have in setting up a structured settlement?
Structured settlements offer a high degree of flexibility and can be customized to meet individual needs. Payment schedules can be set up in a straightforward manner based on your individual needs and wants.
Our specialist, Pam Liggett, can work directly with you to tailor a settlement solution for your specific case.