Today's lesson is courtesy of our "friends" at Forge Consulting to whom we sing...
"Reading Writing and Arithmetic Are The Branches of The Learning Tree
T-T-Teacher's gonna show you how to get an A" ***
The Forge Consulting Website said in May 2007 and still says in November 2009, in relation to how structured settlement payments are negotiated:
"When a case involves personal injury, the amount of money necessary to cover the victim's medical care and living costs is negotiated between the plaintiff and defendant. To ensure that plaintiffs receive the best settlement possible, it is essential to involve a structured settlement expert, who will work in the client's best interests and find a plan that works for them.
Once this agreement is made, the defendant funds a stream of payments to the plaintiff, according to specific needs. In most cases, the defendant then transfers the responsibility to a "qualified assignment," which funds the damage payments with an annuity".
Forge Consulting financial literacy lesson:
- The Defendant does not fund a stream of payments and then transfer the responsibility to a "qualified assignment".
- A "qualified assignment" is a process defined under Section 130(c) of the United States Internal Revenue Code. It is not a legal entity. However an assignment company is!
- The structured settlement process is more accurately described in the following flow chart and here
One-Thir-tee, it's easy
It's Easy As 1-2-3
Simple as Do-Re-Mi... (you get the point!)
***From Jackson 5 ABC Frederick Perren, Deke Richards, Berry Gordy, Jr. (The Corporation), Alphonso Mizell. MJ Rest in Peace.