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December 15, 2010

Prudential Ups Qualified Assignment Fee For Structured Settlements

Prudential announced that effective December 21, 2010 it will triple the fee it charges for accepting qualified assignments through its subsidiary Prudential Assigned Settlement Services Corporation ("Passcorp"). A qualified assignment is an important step in the typical structured settlement transaction for both plaintiffs and defendants and is governed by Internal Revenue Code Section 130.

The following flow chart shows where a qualified assignment fits into a atypical structured settlement transaction.

How Structured Settlement Works Flow Chart-CTLA  With annuity funded structured settlements, a qualified assignment company is typically a subsidiary of the life insurance company that issues the structured settlement annuity. All of the major active qualified assignment companies charge modest assignment fees. As you can see from the following survey, Prudential's  qualified assignment fee now slots in at the top of the scale along with MetLife and New York LIfe which have charged a $750 fee for as long as I can recall.

Survey of Qualified Assignment Fees charged  (as of December 21, 2010)

$750

The Prudential Insurance Company of America

New York Life Insurance Company

Metropolitan Life Insurance Company

$500

John Hancock Life Insurance Company (USA)

John Hancock Life Insurance Company of New York

American Internaional Life Assurance Company of New York

American General Life Insurance Company

Symetra Life Insurance Company

Allstate Life non qualified, via Allstate International Assignments, Ltd.

Liberty Life non qualified, via Barco Assignments, Ltd.

$300

Liberty Life Assurance Company of Boston

$250

Allstate Life Insurance Company/ Allstate LIfe Insurance company of NY

Pacific Life and Annuity Company

The amount of the assignment fee should not be a major factor in choosing between companies to fund structured settlements.  Sometimes companies with the highest assignment fees more than offset the cost with the most competitive rates.

 

Posted at 11:41 PM in IRC 130 Qualified Assignment Tax Exclusion Qualified Assignee, Passcorp, Prudential Financial Inc, Prudential Insurance Company of America, Prudential Structured Settlements, Qualified Assignment, Structured Settlement Industry News |

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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 .
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    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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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

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Structured Settlement Best Practices Corner

  • New York Insurance Advertising law requires the full name of the Insurer to be listed along with the city and state of the principal office. Stating that you represent these fine companies using Insurance company logos without the preceding information are also illegal
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