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June 20, 2008

DealFlow Media Structured Settlements Wire...Yet Another Howler

by Structured Settlement Watchdog®

DealFlow Media's Structured Settlements Wire has delivered yet another howler!

DealFlow Media inaccurately reported that a consortium of structured settlement agencies said it received a private letter ruling (PLR) from the Internal Revenue Service allowing the use of "tax-exempt structured settlements" for employment law cases.

It was clear from the press release from IFS that the PLR clarified tax-deferral.

DealFlow Media also inaccurately reported that non-qualified assignments, typically utilized for legal awards other than personal injury claims, have been a growth area in the otherwise flat structured settlement industry, according to several structured settlement consultants. Up to the private letter ruling, non-qualified assignments involving employment law have been subject to taxation.

  1. A claim and an award are two different things
  2. LIMRA reported only last week that the industry premium was up 7% in the first quarter, a fact reported by DealFlow Media.
  3. A structured settlement may be used for to resolve a claim, a settlement but not an award. A structured judgment is used with an award, unless the award is compromised, which therefore makes it A SETTLEMENT.
  4. "Non qualified assignments" are not subject to taxation. Therefore what follows in the above sentence is moot. A "non qualified assignment" is a method to resolve claims for damages that do not fall within the income tax exemptions under IRC 104(a)(1) or IRC 104(a)(2). Swish!
  5. Tax payers are subject to taxation.
  6. A tax payer may be an individual or an entity, such as a corporation or trust.
  7. In the Business Wire report of the PLR, Co-author of the PLR, John McCulloch clear states tax-deferral not tax-exempt.

The publication "Structured Settlements Wire" is a failure; it is a joke to the structured settlement industry.

If you are Brett Goetschius, the DealFlow Media chief editor, what level of reading comprehension do you expect when you hire your reporters? Homerbrain2tyDo you require them to actually read what they are reporting on?

Read it yourself.

If you are a subscriber to Deal Flow Media's Structured Settlement Report, how's that working out for you? Value for money?

It is interesting to note that, in addition to serial slagging off of the structured settlement industry, with little to no criticism of the factoring industry, waxing poetic about JG Wentworth,  and an abject chicken on "laying" out specifics to back up his "factoring Miracle Gro" advocacy, Patrick Hindert has never publicly criticized or critiqued DealFlow Media. Draw your own conclusions.

 

Posted at 09:26 PM in Non Qualified Assignments, Patrick Hindert, Structured Settlement Watchdog® |

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Guide to Structured Settlements 2022

  • What is a Structured Settlement? What You Need to Know
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  • How Do Structured Settlements Work? How Structured Settlements Work | Structured Settlement Diagram
    How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in with other settlement planning solutions.
  • Rated Ages and Structured Settlement Cost
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    Which life insurance companies issue structured settlement annuities going into 2022? A list of current structured annuity issuers, the location of their home offices and their financial ratings from A.M. Best, Moodys, Fitch, Standard & Poors and/or other Tier1 NAIC ratings, with links to their websites and other useful information.
  • Treasury Funded Structured Settlements
    Treasury Funded Structured Settlements are a settlement option for the most conservative using the OTHER permissible qualified funding asset under IRC 130(d), United States Treasury Bonds in addition to, or instead of, structured settlement annuities. Treasury Funded Structured Settlements can also be used to fund installment sales, also known as structured sales and other non qualified structured settlements.
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    Use the Taxable Equivalent Yield chart to help compare the Internal Rate of Return (IRR) of a structured settlement to other alternative or complementary investments. Need help with the chart? Call 4structures.com® LLC at 888-325-8640
  • Structured Settlement Payments | Types of Structured Settlements
    Ways You Can Structure Your Settlement Payments. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
  • Structured Attorney Fees for Tax Deferral for Contingency Fees
    Structured attorney fees is a financial strategy that offers a unique way to defer taxes for lawyers and law firms. Lawyers CAN structure their legal fees even if the plaintiff doesn't structure their settlement. There are multiple ways to structure your attorney fees, such as the an index linked structured settlement where payments are adjusted based on upside changes in the S&P 500 with no downside and a cap of 5%. Trial Lawyers may also use a special deferred pay/deferred compensation arrangement, if market based returns returns are desired with no cap. Plan NOW for year end! Put structured attorney fee expert John Darer® on your settlement planning team.
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  • Structured Settlement Quote Lock-Ins | What You Need To Know
    What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
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