In S2 Industry, Circles with more than 360 degrees, Denham Grey "analyzes" an old Wisconsin Law Review paper by Washington and Lee Professor Adam Scales, an "expert" that Grey's pal Patrick Hindert "pimped" to The Society of Settlement Planners, Inc. in the opinion of this author, to justify HIndert's rampant promotion of factoring and the tacit approval of the practice by members of that association. (Scales ended up as a featured speaker at its 2006 SSP Annual meeting, later appeared as a speaker at the Nov 2007 National Association of Settlement Purchasers meeting and his name resurfaced in Hindert's review of the 2007 SSP Annual meeting on Beyond Structured Settlements) . Unfortunately Grey's analysis contains the following little piece of misinformation.
And I quote from Denham Grey blog--
"A settlement life-cycle
Scales points to an interesting quirk of legal wrangling. A traditional lump-sum settlement may be turned into a tax free structured settlement**, which can then (subject to State Structured Settlement Protection Acts) be converted into a tax free lump sum payment
**The fact is that a traditional lump sum settlement CANNOT be turned into a tax free structured settlement.