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February 28, 2019

Orlando Obliteration | 19 Year Old Structured Settlement Annuitant $6,351,156.88 for $1,252,430.91

by Structured Settlement Watchdog

Another example of structured settlement payment buyers targeting and exploiting young adults.

N.D., a 19 year old resident of Florida is scheduled to sell the majority of her Prudential structured settlement to a Delaware structured settlement factoring company with ALOT of fat left on the table, possibly in the hundreds of thousands. The transfer hearing is set for late March 2019.

What's on the "Meat Wagon"?

Monthly payments of $1,000.00 commencing on 01/16/2020 through and including 06/16/2021; Monthly payments of $1,500.00 commencing on 07/16/2021 through and including 06/16/2024; Monthly payments of $7,197.83 commencing on 07/16/2024 through and including 06/16/2063 with a 3% increase every July 16th; Lump sum payment of $40,000.00 due on 07/16/2020.

That's a total of $6,351,156.88 in income tax free payments sold for $1,252,30.91. The factoring company uses a 3.4% discount rate to come up with a present value of $2,670,420.76, so the young lady gets less than 50% of the present value. As a point of reference the 30 year bond 52 weeks range was from 2.887-3.465  (Source: Market Watch) at time of posting.

Prudential has been in business for over 140 years!  Assuming the annuitant is insurable, hedging the mortality risk on a 19 year old would cost bupkis.

The transfer petition was filed in Orange County by factoring company, registered in Delaware, bearing an effective discount rate of 7.2% in its New Jersey Mandatory Disclosure  (NJ disclosure required because one of the parties, Prudential, is domiciled in NJ).

One Solution for the Excess Fat in the Orlando deal

 

via GIPHY

Prudential has been in business for over 140 years!

Given that N.D, is a from the Orlando area one wonders which settlement planner advised plaintiffs when the structured settlement was established and whether they might be interested in what is going on.

 

Posted at 01:31 AM in Jacksonville Florida Structured Settlements, Orlando Florida Structured Settlements, Structured Settlement Factoring, Structured Settlement Factoring News, Structured Settlement Transfers, Structured Settlement Watchdog®, Tampa Structured Settlements |

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  • Rated Ages and Structured Settlement Cost
    Rated Ages for Structured Settlement Annuities present advantages to all parties. Shift the mortality risk to a life insurance company whose business it it is to assess mortality risk to price its life insurance and annuities. Rated ages boost your structured settlement annuity benefit per premium dollar, or your yield on lifetime payments. Rated ages help to reduce the cost of funding a Medicare Set Aside arrangement where a Structured MSA, is being used { WCMSA LMSA or NFMSA].
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  • 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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  • Structured Attorney Fees for Tax Deferral for Contingency Fees
    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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