by John Darer CLU ChFC MSSC CeFT RSP CLTC
Who Owns a Structured Settlement Annuity?
The majority of structured settlement annuities are owned by qualified assignment companies not the payees of the structured settlement. Some structured settlement annuities used to fund taxable damages or attorney fees are done by way of a non qualified assignment. As such they may be owned by a company specializing in non qualified assignments. In the case of MetLife Assignment Company, Inc, MetLife's assignment company owns structured settlement annuities funding both tax-exempt and taxable damages.
Immediate Annuities (Dot) Com is a New Jersey broker of structured settlement derivatives, that is one of several companies that conducts business using the scam label Secondary Market Annuity, which is not an annuity.
They say, inaccurately that "A Secondary Market Annuity (also called an 'SMA') refers to a transaction in which the current owner of an income annuity sells his future income steam to a third-party in exchange for a lump-sum payment. Annuity income streams most commonly originate from lawsuit settlements, lottery winnings, or immediate annuities.
Immediate Annuties (dot ) com is not correct because it inaccurately suggests that a structured settlement payee is the owner of the income annuity. In fact, nothing could be further from the truth when it comes to structured settlement ownership.
That the owner of Immediateannuities(dot)com is an annuity MGA who should know better adds a little mustard to be frank.
Read the Settlement Agreement and Release!
A settlement agreement establishing the structured settlement will typically expressly state that the assignment company has all rights of ownership of the annuity. The structured settlement payee only owns the right to receive payments. The payee does not own the structured settlement annuity. It is the structured settlement payment rights that are transferable as long as the transaction complies with state and Federal law.
List of Websites and/or entities Befuddled About Structured Settlement Ownership (at time of posting)
Both of the befuddled sites belong to an Orlando company that uses the sites to conduct business for CBC Settlement Funding, owned by publicly traded Asta Funding. CBC Settlement Funding has been a patron ofthe inaccuracy on the two sites for many years and thus it appears Asta Funding could care less.