by John Darer® CLU ChFC MSSC RSP CLTC
A Davidson County Tennessee Circuit Court jury awarded Fox Sports Los Angeles based broadcaster Erin Andrews $55 million in damages on March 7, 2015. The damages stem from Erin Andrews’s successful lawsuit against West End Hotel Partners and Windsor Capital, operators of the Nashville Marriott at
Shield Yourself From An Immediate Tax Bomb on Taxable Damages, with Non Qualified Structured Settlements
Vanderbilt University. Michael David Barrett, who in 2009 pleaded guilty to interstate stalking of Andrews and sentenced to 27 months in prison, was also a co-defendant in the case. Barrett had stalked and videotaped Andrews on several occasions and in different cities. He duped a Nashville Marriott employee into confirming Andrews’s reservation and his request to book a room next to her was granted. Barrett then used a peephole to surreptitiously videotape her while she changed. He later placed his videos online and millions watched.
How Much of the $55 million will Erin Andrews see?
How much Erin Andrews will be able to collect is up for grabs. She probably won't get much out of Barrett who was assigned half of the liability. One thing that's almost certain is that what Erin Andrews does receive through a final judgment or settlement will be taxable income in a high tax bracket.
Non Qualified Structured Settlement is a Time Tested Tax Deferral Solution
Erin Andrews could well benefit from a non qualified structured settlement which would enable her to spread or defer the income in a manner customized to suit her needs. She already earns a significant income with Fox and the opportunities for tax deferral through qualified plans eventually max out at much lower contribution limits.
Non qualified assignments have been successfully used for decades by parties to help resolve lawsuits where the all or part of the damages are taxable. A non qualified structured settlement can be funded in a number of ways , some dependent on whether or not the Defendants are insured. The following flow chart demonstrates how a non qualified structured settlement works , if funded with an annuity, such as the structured settlement annuity issued by Liberty Life Assurance Company of Boston, a subsidiary of Liberty Mutual Insurance Company. Non qualified structured settlements can also be funded using United States Treasury obligations and reinsurance. There are a few esoteric non qualfied structured settlement solutions as well. A 2008 IRS Private Letter Ruling PLR 200836019, addressed the use of a non qualified structured settlements in an employment context (i.e. taxable damages), ruling favorably on the non qualified structured settlement transaction.
How Does a Non Qualified Structured Settlement Work?
Do You Need a Big Case to Benefit From a Non Qualified Structured Settlement?
You don't need a large case like Erin Andrews' to benefit from a non qualified structured settlement. Even a modest recovery can put you in a higher tax bracket.
Who Do I Contact About Non Qualified Structured Settlements?
For more information about non qualified structured settlements, please contact John Darer® CLU ChFC MSSC RSP CLTC at 888-325-8640
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