AnFed Bank/BoFI Feed

August 21, 2018

AnFed is "Elmer Fudd" on Structured Settlements FAQ

by Structured Settlement Watchdog

Being an FDIC insured institution can't shield structured settlement consumers from AnFED Bank's contribution to the poo poo stew Elmer fudd on the hunt of financial illiteracy that plagues the structured settlement secondary market.

Here is where AnFED Bank is FUBAR on a very basic structured settlement fundamental:

Q. Do I have to pay tax on the lump sum of cash I receive from selling my structured settlement to AnFed Bank?

A. No. Pursuant to Internal Revenue Code Section 104(a)(2), court-ordered structured settlement assignments are tax free. Therefore, you will not have to pay tax on the lump sum of cash you receive for your structured settlement.    

AnFed Bank's structured settlements faq is silly wabbit because:

  • IRC 104(a)(2) says nothing about assignments, let alone "court-ordered assignments" or structured settlements. It is simply a tax exemption for damages on account of personal physical injury or physical sickness
  • The only place in the Internal Revenue Code where the word " structured settlement" appears is IRC 5891(c)(1). One would think that AnFed Bank would be fluent in the tax law that is fundamental to the the business of AnFed Bank, particularly when IRC 5891 imposes a 40% excise tax on the likes of AnFed Bank, if they do not comply with the tax law when buying annuitants' structured settlement payment rights.
  • IRC 130 has to do with qualified assignments. The tax exclusion afforded by IRC 130 inures to benefit of the qualified assignment company when the structured settlement is first established.
  • Qualified assignments are not the same as assignments of structured settlement payment rights to investors pursuant to a "qualified order" in a structured settlement factoring transaction.

                   AnFed gets the "AnFudd" Scalp Treatment

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Posted at 09:57 AM in AnFed Bank/BoFI, Misinformation about Structured Settlement Factoring, Misinformation About Structured Settlements, National Association of Settlement Purchasers (NASP), San Diego Structured Settlements, Structured Settlement Factoring, Structured Settlement Factoring News, Structured Settlement Watchdog® |

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Guide to Structured Settlements 2025

  • What is a Structured Settlement? What You Need to Know
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  • Top Structured Settlement Annuity Companies 2025
    Which life insurance companies issue structured settlement annuities in 2025? 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. Last updated November 3, 2024
  • 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.
  • Compare Structured Settlement IRR to Other Settlement Alternatives
    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 2025
    In 2025, you can structure your settlement payments in various ways. A structured settlement allows for multiple payment types within one agreement. You can tailor and merge different structured settlement payments to suit your individual needs, either alone or alongside other financial instruments. If desired, diversify your structured settlement by utilizing multiple annuity issuers, treasury-funded structured settlements, index-linked structured settlement payments, and market-based structured options.
  • Structured Attorney Fees for Tax Deferral for Attorney Contingency Fees
    Structured attorney fees offer a financial strategy that provides a unique method for deferring taxes for attorneys and their firms. Attorneys can structure or defer their legal fees independently of whether the plaintiff structures their settlement. There are various ways to structure attorney fees, including capped or uncapped index-linked structured settlement annuities with payments adjusted according to the S&P 500 or another index's positive changes. Trial lawyers might also opt for a special deferred payment/compensation arrangement if they seek market-based returns without a cap. As the year-end approaches, consider adding structured attorney fee specialist John Darer® to your settlement planning team for 2025.
  • Structured Settlement Annuity Company Customer Service Phone Numbers
    Receiving structured settlement payments from your own structured settlement or inherited structured settlement? You'll like this huge time saver. Click the title for a link to a comprehensive list of customer service telephone numbers that includes both current AND former structured settlement annuity issuers and reinsurers. If you have simple bank or beneficiary changes, or if the insurance company that issued the structured annuity has merged, sold or spun off its block of structured annuity business (e.g. Aviva, Allstate, Transamerica, AEGON, GE Capital, Liberty, CNA, Confederation Life), oran annuity issuer has changed its name and you're trying to track them down. Here you go! The list is regularly updated. Last updated December 9, 2024.
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  • 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
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  • What Are Market Based Structured Settlements?
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  • iStructure |Uncapped Fixed Index Structured Settlement Annuity
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  • Structured Settlements and Longevity Risk| What Are the Odds?
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  • Intellectual Property Structured Settlements
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
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  • Firmwide Qualified Settlement Funds Debunked
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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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