by John Darer CLU ChFC CSSC
How is structured settlement factoring "route one" to growth of the structured settlement industry? I keep asking the question of Patrick Hindert, who has let 52 days go by without supporting his postulate
This author has discovered a concept map created for S2M by Barbara Bowen entltled "What New Businesss Opportunities Does IRC 5891 Create For S2 Companies" that weakly speaks to the subject. S2 is "geek speak" for structured settlements.
Looking at this concept map is enough to get anyone bewildered. Clearly the old fashioned "concept map" of K.I.S.S* has been discarded. But let's just focus on the question at hand "What New Businesss Opportunities Does IRC 5891 Create For S2 Companies?". If one follows the squiggly from IRC 5891 (in orange in an oval where the third vertical quarter of the page bisects the top third horizontal) Hindert's 3 sole points are:
- IRC 5891 create (sic) larger markets such as Personal Injury Settlement Planning
- IRC 5891 defines Structured Settlement "S2"
- IRC 5891 legalizes structured settlement ransfers
- Personal Injury Settlement Planning WAS NOT borne from the Victims of Terrorism Act of 2001 (which created IRC 5891).
- IRC 5891 contains a definition of structured settlement which is preceded at IRC 5891(c)(1) by the express statement that the definition is "for the purposes of this (tax code) section"
- IRC 5891 DID NOT LEGALIZE structured settlement transfers. IRC 5891 created an excise tax and the exceptions to that excise tax. Read the statute!
I've long felt that Hindert's theory was "bollocks bolognese". Pure propaganda with no substance. Now thanks to Babs Bowen's talents with squiggles we have proof!
Founding Members of the Society of Settlement Planners and other experienced settlement planning professionals in the National Structured Settlement Trade Association (NSSTA) are specifically called upon to respond and/or comment on Hindert's outrageous suggestion that IRC 5891 birthed "Personal Injury Settlement Planning".
*Keep It Simple Stupid"