Structured Settlements 4Real® Blog: Structured Settlements | Settlement Planning News and John Darer Reviews

Annuity Casher | "You Can Still 'Generate' Money" With Now Not Later Move

by Structured Settlement Watchdog

The last time Adler's Insurance tried to be funny in a structured settlement context, Adler's Annuity Casher posted a caricature of a burnt to a crisp black man in a cruel mocking of African-American Terrence Taylor's lawsuit against multiple structured settlement factoring companies in Virginia that is still pending after 7 years! It was a terrible mistake by Adler's. Taylor was severely burnt in a fire caused by an alleged defective space heater when he was a young child and received a sizeable structured settlement that was decimated in 10 transactions over 2 years that are the subject of ongoing litigation in Portsmouth Virginia that is scheduled for trial in mid-2023.

Recently Adler's has waded into "fiscal physics", specifically the generation of money. 

Adler's Insurance Agency Claims:

"The good news is that you can still generate money through your structured settlement by selling some of your payments and get cash for structured settlement payments".

When "Aunt Merriam" Webster, was asked "What do you mean by generate?", she responded

"generated; generating. transitive verb. : to bring into existence: such as. : procreate, beget. : to originate by a vital, chemical, or physical process : produce".

 

Q. Does money come into existence by procreation or, is it printed by the Bureau of Printing and Engraving, or minted by the U.S. Mint?

 

The U.S. Federal Reserve controls the money supply in the United States, and while it doesn't actually print currency bills itself, it does determine how many bills are printed by the Treasury Department each year. The job of actually printing the money that people withdraw from ATMs and banks belongs to the Treasury Department's Bureau of Engraving and Printing (BEP), which designs and manufactures all paper money in the U.S. (The U.S. Mint produces all coins)  Source: Investopedia

 

I suppose some annuitants feel they have been (insert synonym for past tense of procreate that begins with the letter "f") after receiving pennies on the dollar, the "bounty" from selling their structured settlement payment rights. Anyway, selling your structured settlement for pennies on the dollar could hardly be described as "a vital, chemical or physical process".

 

Adler states,

"Remember: when you cash out structured settlement payments, you get less now than you would get in your payments later. You pay a price for receiving money now rather than later". 

But you're still not generating money by selling.

Avoid the Sales Hype and Read This Helpful "Tell It Like It Is" Resource

Selling A Structured Settlement in 2024? Get The 411 on Cash Now (4structures.com)

We do not solicit people to sell their structured settlement payments.

Spring Valley NY Insurance Agency Pushes Structured Settlement Derivatives With Suspect Tax Information

by Structured Settlement Watchdog®

Adler's Insurance Agency of Spring Valley New York is pushing structured settlement derivatives (recycled structured settlements0 to settling personal injury victims with ignorant deceptive information. 

Adler attempts to pass off structured settlement derivatives as having the same tax status as structured settlements paid as compensation for damages to the personal injury victim. 

Jacob Adler says this:

"In a personal injury case, there's usually no tax obligation, and the same should hold true when you are claiming your compensation by buying out someone else's structured settlement instead of setting up your own.

You should not have to pay tax on your future payments received from the structured settlement plan that you have taken over"

This is my complaint about Adler's Insurance Agency's advice about structured settlements

1. A structured settlement  is created as part of a compromise, or "meeting of the minds" between a plaintiff or claimant and a defendant or respondent.  
2. There is a tax obligation. According to the Sixteenth Amendment of the United States Constitution, "The Congress shall have power to lay and collect taxes on incomes, from whatever source derived, without apportionment among the several States, and without regard to any census or enumeration', but there is a specific exemption for damages on account of personal physical injury, physical sickness, workers compensation or wrongful death are income tax free as set forth in IRC 104. Those elements of damages in personal injury cases that do not fall with in the IRC 104 exemption are not tax free. For example the amounts allocated to punitive damages, pre-judgment interest or post-judgment interest are taxable.
   
3. The terms of the structured settlement, particularly the future periodic payment obligation must be set forth in the settlement agreement and release and the qualified assignment agreement.
4. A structured settlement derivative such that Adler is attempt to hock to New York personal injury victims is not a "qualified funding asset' as is defined under IRC 130(d), which, for purposes of that section is defined as "any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States, if—
   (1)

   such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment,
   (2)

   the periods of the payments under the annuity contract or obligation are reasonably related to the periodic payments under the qualified assignment, and the amount of any such payment under the contract or obligation does not exceed the periodic payment to which it relates,
   (3)

   such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with respect to such qualified assignment, and
   (4)

   such annuity contract or obligation is purchased by the taxpayer not more than 60 days before the date of the qualified assignment and not later than 60 days after the date of such assignment.

    

   According to noted structured settlement authority Patrick J. Hindert, structured settlement payment rights are not an annuity and they are not a structured settlement. As licensed insurance producer, Jacob Adler would be expected to know what an annuity is.

    
5. Adler fails to mention the origination risk associated with structured settlement investments purchased from others. 
6. Adler fails to mention that structured settlement derivatives generally do not have the same statutory protection associated with structured settlements that are part of the consideration for settlement of the personal injury victim's case and funded with an annuity as a qualified funding asset. 

Not withstanding what is inaccurate, Adler's advice is jaundiced by the fact that he makes his money on how much he can discount future payments of other injury victims. He takes a certain amount of vig and sells the remaining vig to investors.

Adler's Insurance Agency is the same company that tastelessly shamed black amputee burn victim Terrence Taylor whose claims against several structured settlement buyers, buyers in the same business as Adler, made the front page of the Washington Post and fomented change in Virginia's structured settlement protection laws. 

Adler posted an image of a burn victim whose head was charred with tears flowing, an utterly disgraceful act of bad judgment and an embarrassment to other Jews, given The Holocaust.  Fortunately Adler removed the disgraceful image sometime after I posted about it earlier in 2016.

 

 

 

 

The Question of "Reliablity" and Reliable Structured Settlement Information From Spring Valley NY?

by Structured Settlement Watchdog®

Adler's Insurance Agency is all "tangled up" in attempting to critique the Baltimore Sun's silly statement that "structured settlements are like an annuity".  Adler's Insurance

Adler's  is all tangled up  about what happens with a qualified assignment in a March 1, 2016 blog

Agency, which publicly mocked black amputee burn victim (since age 6) Terrence Taylor with an inappropriate sickening caricature of a man with a charred head in a doctor's office, said the following on its blog March 1, 2o16  (errors highlighted):

"Figure 2 show a snapshot of Baltimore Sun's website writes in a report published on Feb 25 that "structured settlements are like an annuity..."

More accurately, a structured settlement contract is funded by an annuity. The defendant's insurance is assigning the reliability to a company who's buying an annuity from a life insurance company to issue periodic future payments to the recovery claimant. See Figure 4."

Nit-picky comments

1. Figure 2 shows
2. Websites do not write

How the heck did he get this wrong comment?

• Defendant's insurance (policy) does not assign,  the Defendant or Defendant's insurer does
• Adler's poor attempt to describe a qualified assignment comically refers to "assigning the reliability (of what?) to a company who (or is it which) is buying an annuity...". So read literally,  if one has to piss every day like clock work every morning as soon as one's feet hit the floor from the bed at 6am, that's pretty reliable and you can assign that "reliability" of that yellow stream to a company which is buying an annuity"?  Stream v stream of payments?
• The following chart shows the correct sequence of a structured settlement transaction.  First there is a liability established to make future periodic payments.  Then the liability is transferred, subject to the conditions of IRC 130(c), to a qualified assignment company along with funds, which the qualified assignment company uses to purchase an annuity (or, in some cases, united states treasury obligations) as  a"qualified funding asset".

It's a shame that the Spring Valley based Adler's Insurance Agency, like many in the structured settlement secondary market, does not appear to care enough to get it right.  What a pity!