On the "links" of Glendale, Wisconsin's "Fazio National"
The Faz makes the misleading claim that "settlement annuity payments are income tax-free"
Let's break down why the William Fazio (a/k/a "Fazio National") statement is misleading.
What is a Settlement Annuity?
A settlement annuity is a form of funding instrument issued by life insurance companies which may be used to fund future payments to resolve a claim or lawsuit. In some cases a settlement annuity may be referred to as a "qualified funding asset"
- A settlement annuity maybe used as part of the resolution of cases non qualified cases such as structured attorney fees, divorce or employment settlements.Bill Fazio says as much on the very same page that it makes the misleading statement that "settlement annuity payments are income tax free"
- The taxability of settlement annuity payments is a function of the characteristics of damages the payments represent and by using the word "settlement annuity" in both a qualified and non qualified context, William Fazio is misleading his readers.
The content for the Fazio National is claimed by Alonza Group, LLC of which William Fazio is the managing partner, according to the Manta.com profile he updated January 25, 2010.
More information on taxes and structured settlements here