Structured settlements expert John Darer reviews the latest structured settlements news and information and provides expert opinion and commentary, including settlement planning issues/ ideas for settlement management, incisive Structured Settlement Watchdog® commentary that may be helpful to lawyers, plaintiffs, claims adjusters, judges, the news media, sellers and buyers of structured settlement receivables,and interested others. The style is spicy, informative, irreverent and effective. The most prolific structured settlements blog, Now in 19th Year! Check back daily for something new.
One of the most positive structured settlement product developments of a record breaking 2023 was the introduction of Prudential Income Advantage, an index linked structured settlement annuity.
Prudential Income Advantage is the third index linked structured settlement annuity currently on the market, following offerings by Pacific Life in 2014 and Independent Life in 2020. The Prudential Insurance Company of America, founded in 1875 and based in Newark New Jersey, is one is one of the oldest and largest life insurance companies insurance companies in America offers a fully domestic solution.
Increased Choices for Structured Settlement Consumers Regardless of Interest Rate Environment
This is great news for structured settlement consumers and beneficiaries, which include personal injury victims, wrongful death survivors, personal injury attorneys seeking structured attorney fees. Allocating to an Index linked structured settlement offers growth potential, downside protection and tax benefits.
Prudential Index Linked Structured Settlement Annuity Supported by Two IRS Private Letter Rulings
Prudential sought and obtained favorable IRS Private Letter Rulings to support Prudential Income Advantage. The two PLRs were issued on October 30, 2023. Click on the links below to view the PLRs.
1. PLR 109798-23 issued to Prudential's qualified assignment company
Tax-Free Structured Settlement Annuity | No Such Thing
John Darer reviews the term "Tax Free Structured Settlement Annuity", which you may encounter on the Internet. Be mindful that there is no such thing as a Tax Free Structured Settlement Annuity.
Don't worry annuitants, there IS a tax exemption, but not exactly the way it's being presented in many cases by competent settlement practitioners and reputable settlement companies that should know better. Please read on for clarification of what is tax-free.
Examples:
One settlement planner's website says "Structured settlement annuities are not taxable — they're completely tax-exempt"
Another settlement planner's website says "Tax-free Income: 100% of structured settlement annuity is tax-free – including the settlement award, principal, ongoing payments and interest earned".
"a tax-free structured settlement annuityto meet medical and living expenses, or other financial planning tactics".
"A tax-free structured settlement annuityqualifies for special tax treatment under IRC §§104(a)(2) and 130(c)"
"A claimant cannot accept a cash settlement and then purchase an income tax-free structured settlement annuity on his/her own"
The best time to start preparing for your financial future is right now. Consider the many advantages of a Tax-Free Structured Settlement Annuity.*"
" I work with the Tax Free Structured Settlement Annuity Product and Various Trust products"
The Damages That the Structured Settlement Payments Represent is The Key
While some of the incorrect statements by some settlement planners may seem plausible, it is the nature of damages that the structured settlement payments represent that is a critical factor, not the structured settlement annuity contract itself.
Think about the applicable tax code sections cited in every settlement agreement that involves a structure. The word "annuity" does not appear in IRC Sections 104(a)(2) or IRC 130(c).
"Annuity" appears in IRC 130(d), which provides the requirements an annuity must meet to qualify as a qualified funding asset, including the requirements that (i) the periods of the payments under the annuity contract are reasonably related to the periodic payments under the qualified assignment, and (ii) the amount of any such payment under the contract does not exceed the periodic payment to which it relates.
Furthermore, a structured settlement annuity is a versatile insurance contract that can be used for a variety of applications, including structured settlements being used as a funding vehicle for settlements involving periodic payment of taxable damages and structured installment sales.
I encourage my industry colleagues to take greater responsibility, hopefully with the recognition that inaccurate statements end up getting parroted or cited by others.
A structured settlement annuity is insurance product that (1) can provide multiple payment streams, as well as (2) different types of structured settlement payments, in a single annuity contract that can be customized to a person's needs.
A structured settlement annuity is often (but not exclusively) used as a "qualified funding asset", as the latter term is defined by IRC 130(d).
What is a Qualified Funding Asset?
For purposes of IRC 130(d), the term “qualified funding asset" means 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.
It should be noted that the term "structured settlement annuity" does not appear in IRC 130(d).
Examples of Where a Structured Settlement Annuity Would Not Be Used as a Qualified Funding Asset
A structured settlement annuity can be used in cases involving taxable damages. A non-qualified assignment is used in such cases (or parts of cases) involving such damages.
Examples of What is NOT a Structured Settlement Annuity
Acquired structured settlement payment rights (the rights to someone else's structured settlement). See the National Association of Insurance Commissioners' statutory issue paper No. 160, issued April 6, 2019. Plaintiffs, Counsel, Guardians Ad Litem, Probate and Surrogate judges and investors, should be leery of any attempt by a settlement planner or financial adviser to pass off the direct or indirect acquisition of factored structured settlement payment streams as a structured settlement annuity. Such unregulated products carry higher risks than structured settlement annuities and may not have the same statutory protections.
A retail single premium immediate annuity is an annuity, but it is not a structured settlement annuity
A retail single premium deferred annuity is an annuity, but it is not a structured settlement annuity
A retail deferred index annuity is an annuity, but it is not a structured settlement annuity
A retail fixed index annuity is an annuity, but it is not a structured settlement annuity
None of these becomes a structured settlement annuity just because it is owned by an independent assignment company.
What Do Structured Settlement Annuity Issuers Say?
A quick survey of insurance companies underwriting structured settlement annuities shows that about half of them specifically identify with structured settlements. Not a single one would sell a structured settlement annuity to an independent assignment company.
1. The Prudential Insurance Company of America
Single Premium Structured Settlement Annuity Certificate
2. Pacific Life Insurance Company/ Pacific Life and Annuity Company (New York)
Single Premium Settlement Annuity
3. USAA Life Insurance Company
Single Premium Immediate Annuity (For Use as a Funding Asset in Structured Settlement Assignments)
4. New York Life Insurance Company
Lists Plan as Structured Settlement on contract
Others do not.
Would any structured settlement annuity issuer sell a structured settlement annuity to an independent assignment company?
None of the structured settlement annuity issuers that we canvassed for this post on November 2, 2021 would sell a structured settlement annuity to an independent assignment company.
Assignment Fees
With one exception, Qualified Assignment fees will not be over $750 for a true structured settlement annuity
You may find some independent assignment companies charging higher fees, perhaps even asset based qualified assignment fees that are a significant multiples of what the insurance company subsidiary qualified assignment companies charge.
A structured settlement is a negotiated financial or insurance arrangement through which a claimant or plaintiff agrees to resolve a personal injury tort or wrongful death claim by receiving all or part of a settlement in the form of periodic payments on a agreed customized schedule, rather than as a lump sum.
A structured settlement is a negotiated agreement
Definition of Structured Settlement per IRC §5891(C)(1)
The term "structured settlement" means an arrangement—
(A) which is established by—
(i)
suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or
(ii)
agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104(a)(1), and
(B) under which the periodic payments are—
(i)
of the character described in subparagraphs (A) and (B) of section 130(c)(2), and
(ii)
payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.
Structured settlements can also be used for taxable damages, or for tax exempt damages that are not specifically included in IRC §130 (e.g wrongful imprisonment, wrongful conviction which are exempt under IRC §139F).
How Are Structured Settlements Funded?
Structured settlement payments are generally funded and backed by highly rated and regulated life insurance companies, a number of which have been in operation for more than 100 years. Structured Settlements can also be funded with obligations of the United States Government (Treasury Funded Structured Settlements)
Structured settlements have received widespread bipartisan support from the U.S. Congress since the enactment of the Periodic Payment Settlement Act of 1982.
If You Bank It, Don't Bank on Maximum Financial Aid
Structured Settlements Avoid the Kiddie Tax and Can Be Designed To Minimize Impact on Financial Aid
Parents or guardians of minors who are receiving a settlement in a personal injury or wrongful death case, should give due consideration to how the settlement will impact the ability to receive financial aid for college. Having a lot of money in a bank account, or in a CD coming due at age 18, could reduce or even eliminate, the possibility of receiving needs based financial aid. Depending on the school, the FAFSA (for federal student aid) or CSS Profile (for institution based student financial aid) may be used. Each of those forms requires a significant percentage of student assets be used in its calculation of Expected Family Contributions (EFCs). At present that is 20% for FAFSA and 25% for the CSS Profile.
Structured Settlement Annuity is Not an Asset of Minor
A structured settlement annuity is not an asset of the minor. The structured settlement annuity is owned by a qualified assignment company in most cases. In rare instances it is owned by the Defendant or Defendant's insurer. The minor only has the right to receive payments when due and would have had no control over the establishment of the structured settlement. Furthermore, in accordance with terms of the structured settlement and in compliance with tax code, the periodic payments cannot be accelerated, deferred, increased, or decreased, by the recipient of such payments". [ see IRC 130(c)(2)(B)]
Tax Difference Between Structured Settlements and CDs
Damages for personal injury or wrongful death are income tax free, subject to IRC 104(a)(2). While a lump sum from a personal injury or wrongful death settlement would be income tax free, the interest on a lump sum invested in bank CDs would be taxable. So, for example if you have a 12 year old son and invest in a 5 year CD with Barclay's at time of posting, it would earn 2.75%. The 2.75% would effectively be reduced by the tax on the interest, which could be inflated if there is a kiddie tax [ See below and Taxable Equivalent Yield | What is The Value of the Structured Settlement Tax Benefit?]
Kiddie Tax Impact
The interest on a minor's personal injury or wrongful death settlement could be taxed at a high rates if invested in CDs, or other taxable investments. The Kiddie Tax is applied to the amount of the child's unearned income that exceeds $2,100. The Kiddie Tax rate is parent's or parents' marginal tax rate (the highest rate applied to the last dollar earned) which could be as high as 37%, for the 2018 tax year. [ see IRS Topic 553 Tax on a Child's Investment and Other Unearned Income (Kiddie Tax)]
Notwithstanding the above, there is substantial risk of wasteful dissipation in making a large sum of cash available at age 18. A teenager or young adult could benefit from wealth orientation by speaking to a Certified Financial Transitionist.
On April 9, 2017, the New York State Senate passed a budget that includes a $163-million annual initiative to offer free full-timeundergraduate tuition at public colleges and universities to students with an annual family income of $125,000 or less. No age limit! The new program represents a first in the United States and includes students from many families whose income levels would be considered middle class.
Eligible Students Can Make Use of The NY Excelsior Scholarship Starting With Fall Semester 2017
The Excelsior Scholarship
It's called The Excelsior Scholarship and it was first proposed by New York Governor Andrew Cuomo in January 2017. The program is slated to be phased in over the next few years, but families earning $100,000 or less will be able to take advantage of the scholarship beginning with the Fall semester 2017 with increases in family income to be phased in $110,000 in 2018 and $125,000 in 2019. Students who qualify for The Excelsior Scholarship may avail themselves of a wide selection of colleges and campuses at City University of New York (CUNY) or State University of New York (SUNY). The State University of New York claims to be the largest comprehensive system of higher education in the United States, with 64 college and university campuses located within 30 miles of every home, school and business in the State of New York.
An April 8, 2017 press release issued by Governor Cuomo's office estimates that nearly 80% or more of the 940,000 families with college-aged children would qualify for tuition-free college under the Excelsior Scholarship program.
How Does It Work? What is the potential savings on tuition? When Will Excelsior Scholarship Applications Be Available?
An Excelsior Scholarship recipient can receive up to $5,500 from the Excelsior Scholarship, minus any amounts received for TAP, Pell or other scholarships. The remainder of your tuition charge will be covered through a tuition credit paid through SUNY or CUNY.
It adds up to $25,880 at current rates for a 4 year degree at SUNY schools and $17,400 at current rates for a 4 year degree at CUNY schools, where tuition can go up by a nominal $200 annually.
The New York website indicates that Students in an undergraduate program of study normally requiring five years are eligible to receive the award for five years
New York state's website says that the application for the Excelisor Schiolarship will be first available in May 2017. Check the link at the bottom of this post and sign up for alerts.
Are books, fees and room and board covered by The Excelsior Scholarship?
No
Other Eligibility Rules to Obtain and Continue to Recieve New York's The Excelsior Scholarship?
Must be full time (i.e. 12 credits per term, 30 credits per academic year, including summer school). Important Note: Students with disabilities will not be required to register full time to be eligible for the scholarship at SUNY
Must maintain the necessary grade point average to graduate on time.
Must be a citizen of the United States, permanent resident or a refugee.
Currently undocumented aliens are not eligible.
Do you qualify for The New York Excelsior Scholarship If Your Family Earns More Than The Threshold income?
If your family earns more than that, you don't get the scholarship. There is no sliding scale and the threshold does not take into consideration how many children are in the family.
Students Must Remain in New York For The Same Number of Years That They Received. Why?
If you receive the scholarship for 4 years a student must remain in New York for 4 years. If you don't remain then the scholarship is converted to a loan. Yuck!
Think about it, the Excelsior Scholarship is a costly program that potentially does a lot of good. By providing education that creates more job opportunities for more people to get ahead and potentially earn more money that can be taxed by New York State to finance the program is good business. The fact that there is no age limit expands the opportunity.
Settlement Planning Opportunities and Considerations With The Excelsior Scholarship and Collateral Benefits
Potentially helpful on small to mid-size personal injury or wrongful death settlements involving minors as resources allocated to fund tuition could be deferred longer via a structured settlement to help fund graduate school, in New York (so your scholarship doesn't convert to a loan!).
Consider as an example a minor's settlement involving a 15-16 year old. The short deferral period for a lump sum payments from a structured settlement at 18 or 19 is not cost efficient in the current environment, but payments beginning at age 22 to help pay for grad school may very well be.
Let's take a look at the math. Assuming a 15 year old currently finishing freshman year in high school and expected to start college in 2020 and using the rates of Liberty Life Assurance Company of Boston for illustrative purposes, the estimated SUNY 4 year tuition cost, assuming $200 annual increases each year until and through the 4 years of college would be $29,480. That could be funded at current rates for for about $27,856. If the same amount of money were to instead pay only two annual payments to help with grad school starting July 2024, the total payout would be $33,058. The interest gain accumulated by using taking advantage of Excelsior and using the same premium to fund the graduate payments results in about 3.2 times more interest!
Another option would be to take the same amount of premium generated by not having to fund the annual tuition starting with freshman undergraduate and fund a 5 year income stream after college graduation to help subsidize independence. A monthly payment of $586.09 ($7,033.08 annually) could be generated based on book rates of Liberty at time of posting.
Given that there are no age restrictions, on the one hand a New York resident, possibly a single parent, who had a child or children at a very young age and may have curtailed some education to raise a family, has affordable options and can now go back to school and open a new world of opportunities for themselves and their families.
On the other hand an ambitious senior could get a college degree, just like my maternal grandmother who went back to college after my grandfather died and earned her Bachelors at age 80.
Be sure to consider the cost of room and board and fees not covered by the scholarship.
Stop structured settlement cash now pushers dead in their tracks. As long as the student is willing to go to one of the many fine SUNY or CUNY schools this should seriously eliminate college tuition as an excuse to sell structured settlements. Regulators and judges reviewing transfer petitions will have to be on their toes.
What Excelsior Scholarship Does Not Cover
Room and Board and Fees
Graduate School
If you want to go to a non SUNY or CUNY university, or a school outside of New York Excelsior is not going to help. But if you want to maximize the resources you could attend undergraduate school in New York and one of the many excellent grad schools in New York and then if you like go for another degree at a non New York school.
Useful Resources About The Excelsior Scholarship and Other Financial Aid for Education
State of New York you can sign up to get an alert when the application becomes available
High Education Services Corporation's Get on Your Feet Program, Federal student loan debt relief for New Yorkers.
Periods when there is a low interest rate environment favors New York plaintiffs willing to try strong liability cases due to a 30 year old statutory growth rate juxtaposed against low interest rates that are under 4%.
When the 4% statutory growth rate under New York's Article 50-B statute, set in 1986, exceeded the 10 year bond by 2.63% as they did in July 2016.
Long term damage awards which used to afford a significant discount when the statute was established in 1986 no longer do with the net discount rate closing in on -2%. A negative 2% discount rate is a growth rate of 2%.
What Does a Rate Inversion mean in a Present Value calculation?
Assume $1,000,000 net future pain & suffering (after accounting for the first $250,000 in future damages under Article 50-B)
Instead of a discount, with a net growth rate of 2.63% for 10 years the present value adds $26,000 plus per year for 10 years to the verdict number.
When calculating the present value of other elements of damages like future medicals and future lost earnings, you could be adding close to $20,000 annually per $1,000,000 to the verdict, for the number of years awarded by the jury
Then interest gets added onto that at 9% (less if state or city government)
A rated age will be issued if the structured settlement annuity issuer believes the plaintiff has an impaired life expectancy. The rated age is simply the age used to price the structured settlement annuity, or New York structured judgement annuity, as opposed to the actual age
Rated Age Structured Settlements Can Boost Your Potential Lifetime Annuity Payout
From the plaintiff's perspective, rated age will serve to boost the yield per settlement dollar allocated to a structured settlement.
From a defendant or insurer's perspective, a rated age will serve to reduce the cost of settlement offers for paying life contingent future damages.
How Does a Rated Age Help Reduce the Cost of A New York Structured Judgment?
A rated age could reduce the cost of a structured judgment in New York for a Defendant. Certain aspects of a structured judgment, pursuant to CPLR 50A or CPLR 50B are life contingent, future medical expenses and future pain & suffering. A rated age would most likely impact future medicals, which stretch many years into the future, Under New York law, future pain & suffering is compressed into 8 years for Article 50-A and 10 years for Article 50-B structured judgments, so it would need an exceptionally high rated age to have any impact.
High rated age structured settlements may hold an advantage over other vehicles and even a modest amount allocated from a large settlement, can effectively be used as an "investment backstop" to assure a certain level of future income, even if everything else is lost.
Moreover payments from structured settlements are income tax-free pursuant to Sections 104(a)1 or Section 104(a)(2) and 130(c) of the Internal Revenue Code. A structured settlement offers contractual certaintyas opposed to hypothetical investment possibility. A structured settlement blended with a settlement trust,such as a Settlement Preservation Trust or Special Needs Trust (Supplemental Needs Trust in New York state),in tandem, may offer a plaintiff a measure of liquidity, contractual guarantees, upside potential along with downside protection.
New York judges are approving index-linked structured settlements for minors in an Infant Compromise, as part of a proposed settlement planning allocation to complement fixed rate structured settlements in the current interest rate environment. What's the attraction? Priced at approximately the rate of a structured settlement with a 2.3% COLA, index-linked structured settlement payment riders on structured settlement annuities, issued by Pacific Life and Annuity Company in New York* and Pacific Life Insurance Company elsewhere, are ideally suited for a plaintiffs with a long time horizon.
Indexed Linked Annuity Payment Adjustment riders are generally not a cost effective solution for short term structured settlements
The initial adjustment cap since the product was introduced has been 5%. That's 5% increase in payments on completion of the first year of payments , but the cost of a 2.3% COLA. If there was a down market the following year the minor's payments stay the same, averaging out to a 2.5% increase annually over the two years with the exemplar. If you are concerned about low interest rates and have the time to spread out your payments then an allocation to the index-linked structured settlement is a good alternative, as some New York judges have discovered.
The ILAPA rider can be used for plaintiffs or structured attorney fees.
*Pacific Life & Annuity Company will issue annuity policies if ANY of the following occur inside the state of New York: solicitation, sales, negotiation of settlement, court/legal action, or claimant/payee residence.
Difference Between an Annuity vs Structured Settlement
An annuity is a financial product issued by life insurance companies and sold by licensed and appointed agents and/or brokers that is designed to receive and grow funds from an individual and then, upon annuitization, distribute a stream of periodic payments to the individual at a later point in time. Annuities can be fixed, variable or participate in one or more financial indexes and payments can do for afixed duration or for life..
Annuities are primarily used as a means of securing a stable cash flow for an individual during their retirement years.
A structured settlement annuity is a customizable specialty annuity that is used as a "qualified funding asset" to resolve legal disputes or litigation.
A structured settlement may contain one or more payment streams. These payment streams can be of different types, amounts and duration making them ideally suited for addressing known needs with a single contract. This could be very useful in addressing known future medical expenses.
Structured settlement payees are permitted to name or change beneficiary.
Some of the nonsense you may see published by, or on behalf of, Structured Settlement Factoring Companies is realy discombobulated. I've straightened out a few things below.
There are Different Remedies for Civil Cases and Criminal Cases
Some structured settlement factoring company publications refer to civil defendants as being found "guilty". This is inaccurate because Defendants in a civil case are not "found guilty" and convicted to a jail sentence for a personal injury case. For a conviction in criminal court the people's case must be proved "beyond a reasonable doubt". In civil court, a successful plaintiff has merely established its claims by a preponderance of evidence ("more likely than not") and the Defendant is found liable, not guilty.
There may be certain occurences that give rise to a civil suit as well as criminal lawsuit. For example a drunk driver kills or maims another driver, passenger, or pedestrian.
In criminal court you can be taking away someone's freedom, citizenship and/or life.
A civil judgment takes away their money or enjoin certain behavior, not freedom. The OJ Simpson case is a case in point. At his criminal trial, OJ was found not guilty of June 1994 murders of Nicole Brown Simpson and Ron Goldman, yet found liable by "a preponderance of evidence" in a later civil trial, in which plaintiffs were awarded a sum of money. OJ is currently in jail because of an armed robbery conviction, following a criminal trial
Back to Front on the Definition of Structured Settlement
A structured settlement does not mean payments are converted from a lump sum, rather the consideration for the release of the plaintiff's case is, in part, the structured settlement payments themselves. Structured settlement payments may be immediate, deferred, both, or more options. For more detail about types of structured settlement payments, please see Types of Structured Settlement Payments | Your Structured Settlement Payment Options (4structures.com)
What is a Structured Settlement? What You Need to Know Structured settlements and what you need to know about them including a helpful introductory video featuring A.M. Best Client Recommended Structured Settlement Expert and Registered Settlement Planner John Darer of 4structures.com LLC
How Do Structured Settlements Work? How Structured Settlements Work How structured settlements work, including 4structures.com LLC's super helpful structured settlement flow chart/diagram showing how structured settlements fit in on the spectrum of settlement planning solutions.
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].
Top Structured Settlement Annuity Companies 2024 Which life insurance companies issue structured settlement annuities in 2024? 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 June 14, 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 2024 Ways You Can Structure Your Settlement Payments in 2024. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
Structured Attorney Fees for Tax Deferral for Attorney 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 capped or uncapped index linked structured settlement annuities where payments are adjusted based on upside changes in the S&P 500 or another index, 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 in 2024.
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 May 20, 2024.
Structured Settlement Quote Lock-Ins | What You Need To Know What does a Structured Settlement Lock-In Mean? How do plaintiffs, defendants and insurers benefit from a structured settlement quote lock in when finalizing a settlement? How does the defendant/insurer/court benefit from using a structured settlement lock-in? Where to be careful when using structured settlement lock ins.
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 Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
What Are Market Based Structured Settlements? Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that:
1. Can afford to take some market risk
2. Have discretionary settlement dollars.
Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
Structured Settlements and Longevity Risk| What Are the Odds? Do your financial resources give you enough road, or will the road run out before you do? A structured settlement annuity helps mitigate the risk of outliving your savings, no matter how long you live. A structured settlement can include one or more customized payment streams and types.
Firmwide Qualified Settlement Funds Debunked Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.
Simply Click the Subscribe Button at the top left of the page above the blog title which will take you to the blog subscribe page or follow this link https://feeds.feedblitz.com/structuredsettlements
STRUCTURED SETTLEMENTS 4REAL® Blog Is a Popular Source of Structured Settlement News, Information and Commentary, John Darer Reviews, Settlement Planning News and Financial Solutions for over 18 years,
with a stable readership that seeks credible structured settlement information, John Darer Reviews, commentary and/or opinion about topical issues related to settlement planning, targeted to lawyers, injured persons and their family members, guardians, survivors, judges, magistrates, special masters, mediators, administrators, trust companies, insurance company executives and adjusters, financial advisers, settlement professionals, financial professionals, insurance regulators, government leaders, federal and state law enforcement, buyers and sellers of structured settlement payment rights, the news media and other interested parties.
4structures.com LLC established this structured settlement blog in 2005. John Darer ®, CLU ChFC MSSC CeFT® RSP CLTC, President of 4structures.com, located in Stamford, CT 06902. John Darer is an experienced New York City area structured settlement expert, structured settlement broker, Certified Financial Transitionist, and Registered Settlement Planner. He holds insurance licenses in 45 states, has 41 years financial services experience and 31 years in the structured settlements and settlement planning space.
In his capacity as a investigative journalist and commentator, and professionally, John Darer passionately believes that shining the light on a business practice is both healthy and newsworthy. It is in the best interest of injury victims, their families and their legal advisers, that the settlement planning discussion involve those that are properly trained in the topic, properly informed on the topic and, with respect to structured settlements, properly licensed and/or appointed. It has significant instructional and deterrent value to other practitioners and firms as well as those who may be caught in the cross hairs.
WHAT YOU GET here is the straight stuff with a touch of irreverence and humor. We hope you enjoy and find the content to be helpful.
Subscribe to the structured settlement blog feed, or a specific category feed through your blog reader, or through the Subscribe button at the top left of this page. Followers of JDDarer™ on Twitter may also receive select content.
If you would like to speak with John he can be reached at (888)325-8640
Thank you for reading!
Last updated July 10, 2024
New York City Structured Settlement Experts Bridge building settlement consultants who collaborate with clients using a humanistic process, providing creative and reliable advice and support for litigating parties and their lawyers with matters in Courts throughout the New York City metropolitan area
New York Structured Settlement Expert Whether you're at the crossroads of the world or the crossroads of your life, structured settlements provide stability for when life is at a crossroad. Call 888-325-8640
New York Settlement Planning Expert for NY Attorneys and Residents - YouTube New York settlement expert John Darer's comprehensive approach to Settlement Planning helps New York personal injury lawyers and their clients move through the financial transition resulting from a major life event. CPLR Articles 50A and 50B expertise for New York lawyers
New York Structured Settlement Expert Useful information and ideas about structured settlements, settlement planning and litigation recovery managements for New York residents, New York Lawyers and New York judges
New York General Obligations Law §5-1702 The New York Structured Settlement Protection Act imposes mandatory requirements on the defendant or the defendant's legal representative when a structured settlement is created (as part of the resolution of a case)
Structured Settlements v Structured Judgments Often confused by writers on the Internet, but there IS a difference between structured settlements and structured judgments under CPLR Articles 50A or 50B. Find out more...
Connecticut Structured Settlement Experts 4structures.com LLC is based in Stamford CT and Connectict works with clients all over CT, Greenwich, Stamford, Darien, New Canaan, New Haven, Hartford, West Hartford, West Haven, Torrington, Danbury, Wilton, Ridgefield, Norwalk, Midletown, New London, Westport, Oxford, Stratford, Old Greenwich, Stafford, Storrs, Groton
"I'm with ***** Settlement Funding and appreciate your TRUTHFUL information"
Structured Settlement Factoring Company representative on LinkedIn, January 26, 2024
"You have a wonderful blog"
Partner in Philadelphia law firm August 30, 2020
"Impressive Blog" -Counsel to Am Law 200 ranked International Law Firm July 22, 2020
"Thank you so much for giving us your time and leading us in the right path , Thank you, you are a God send , God bless you in all your works" -K April 11, 2017
"Once again, I can't tell you how appreciative I am for your help. In today's day and age, it is rare that you actually find people who are willing to go the extra mile..." -TC May 5, 2015
"I wanted to send you this email to say Happy New Year to you and your family. May God continue to bless you. I am grateful that I had the opportunity to meet you on the phone. I truly thank you for introducing me and my son, (redacted) to (lawyer). It is people like you that God put in the path of my son situation. Thanks a million times! {original on file] 1-2-2015
"John Darer has been nothing but honest,helpful,informative with options, & his
"time" was NEVER an issue!"-Andrew S 8/18/2012
" I wish there were more like you" JG 9-15-2014
In my opinion, John Darer is an excellent consumer advocate in the insurance industry. When I had no one else to turn to after running up against the stone walls of these giant insurance company, John Darer used hours of his own time to investigate my situation. Not only is this an invaluable service to me the consumer but it is also of great value to the insurance industry by providing them consumer feed-back. This allows the insurance companies to correct their faults and move toward greater transparency which improves the overall public image of the insurance industry as a whole" JW 9/4/2014
John, Keep fighting the fight. -NASP member 12-4-2013
John...Thank you for your professional advice-Brandon 11-13-2013
"...Thanks to Mr. Darer's blog and personal pointers I was able to obtain a fair price for the sale of client structured settlement. Therefore, if one has no choice, but to sell their settlement educate yourself first before selling start by reading John's blog" Mr P. 11/17/2012
"I always appreciate when he (John Darer) keeps us informed on regs and rules. No one does it better"- structured settlement industry colleague and reader RY 7/26/2012
"Amen - and continued thanks for your vigilance, John"- RL 8/18/2011
"Thanks for writing these great blogs on your site John! As an individual investor I have learned so much about the secondary market (for annuities, structured settlements, lottery payments, etc.) from your blogs and video series!!!" (6/5/2011)
I have found the intelligent and forthright information on your site a godsend. So much so I have tried in a small way to pass on my findings to others. Please keep up the good work and enhance your well deserved reputation as the authority on this subject- Mike 4/29/2011
John -
I can't thank you enough for bringing this to my attention. In my wildest dreams... PJ-May 12, 2011
John, I love reading your blog! Not only have I found very useful information there, but the comedy is much appreciated! Thanks for talking about "the big pink elephant in the living room" that everyone else ignores!
Thank you again for your help via phone and blog! I really needed to hear what you had to say today! BM 11/23/2010
John—this (video published 11/2010) is a well done piece. I like the way you always stick to the facts-AM
What a wonderful blog you have! I have completely enjoyed reading some of your posts (4/16/2010)
Thank you so very much for discussing my concerns about Symetra, my annuity company. I am amazed that PI attorneys as well as a settlement broker in San Diego, could not answer the simplest questions I had regarding the Safeco/Symetra issue. Your blog/web site is most interesting and informative, and I am grateful you have take on the "watchdog" role!
Thank you so much again (3/25/10)
"Keep up the good work exposing abuses in our industry - our future depends on clients being properly advised."-CD
Just checked out your blog and loved it. Keep up the good and balanced work-DL
"...we have never met but I thoroughly enjoy your web site and blog - excellent material…-PB
"I enjoy your website and its content. Informative and well written"-JC
I heard a radio ad for the Peachtree Settlement Fund as I was driving into work this morning. (San Francisco Bay area.) I decided to check it out on the Internet and came upon your blog. Thank you very much. I do not have a “structured” settlement,
"All the others that I had emailed & have seen on the net were "cash now types" & have no concern of me & just are looking for my $$$. When I came across your site & blog I realized that u are an upstanding guy & are not like others. That's why I emailed"
This was Great. Right On Point-TS
"Other Than John Darer No One Seems To Be Doing Anything"-J
Thanks for your help and also for the good work you do on behalf of our industry-L
"Thank you for being the inspiration that you are and for being a strong advocate for integrity in our business"-KL
"I Commend You On Your Effort To Make a Difference!" -R
"He is a fabulous writer who has a great passion for the structured settlement industry. I commend him on the passion he invokes when he writes on his blog listed above. That type of commitment and passion is hard to find and is rare in this world" -AC
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
When it comes to settlement documents it is the ultimate responsibility of the lawyers or claims adjusters who receive input concerning the structured settlement aspects of the documents to actually read the entire document, exercise independent thought and advise their clients properly
Be aware that financial advisors use of testimonials is prohibited or restricted
Most states require that Testimonials represent the CURRENT opinion of the person who made the testimonial. Be prepared to back it up.
Number of States That Prohibit Payment of QSF expenses by licensed agents and brokers
All posts, including memes created by John Darer, Copyright 4structures.com, LLC 2024. All rights reserved. Ongoing filings have been made with the United States Copyright Office. Except for those videos in which John Darer appears, or any video advertisements or public service videos appearing on, this blog, no claim is made to videos, music or images in any mashup which are the property of their respective owners. Disclaimer: The use of any marks herein does not suggest any sponsorship, affiliation or relationship with owners of such marks. Any marks used in commentary herein are in the context of fair use to discuss the newsworthy topics presented herein.This web site is not endorsed by, directly affiliated with, maintained, authorized, or sponsored by any insurance or other company referenced herein. All products, services and company names are the registered trademarks of their original owners. The use of any trade name or trademark is for identification and reference purposes only and does not imply any association, sponsorship or endorsement between the trademark holder and the operators of this web site.
Structured Settlement Watchdog® is a registered trademark of 4structures.com LLC. USPTO Reg. 4711312 All rights reserved.
John Darer® is a Registered Trademark of John Darer, Stamford CT. USPTO Reg. 4674907 All rights reserved
4structures® Reg. 4640532 and 4structures.com® Reg. 4640531 are Registered Trademarks of 4structures.com LLC. All rights reserved
Structured Settlements 4Real® is a Registered trademark of 4structures.com LLC Reg.4345946 All rights reserved.
Comments and Trackback Policy
Comments and Trackback Policy
Comments to this blog are encouraged, welcome and add spice to the interactive nature of blogs. However, the unscrupulous practice by some to deliver comment spam, to connect all manner of unrelated products to structured settlements, detracts from user experience, is NOT tolerated by this author and thus necessitates the practice of comment screening.
Jay J. Sangerman, PLLC A New York and Florida based AV rated estate planning law practice with an emphasis in Supplemental Needs Trusts, which assists attorneys in efficient case settlement though the use of Supplemental Needs Trusts and Special Needs Trusts; and Elder Law
Day Pitney LLP - People - Keith Bradoc Gallant Brad's practice includes traditional trust and estate planning and administration, special needs and disabilities planning, planning for same-sex couples and their families, planning for incapacity, and all types of probate litigation.
Helpful Structured Settlement Information is Here!
Learn more about structured settlements by reading structured settlement expert John Darer's blog
Researching Structured Settlements? It may be helpful to check (1) in Archived Blog Posts (above left); (2) use the Google search box (below); (1) visit the 4structures® website at https://www.4structures.com, (4) visit 4structures® Structured Settlement Experts YouTube Channel by clicking https://www.youtube.com/user/4structures1, or (5) call settlement expert John Darer® at 888-325-8640, toll-free in the USA, 646-849-1588 in New York City, or 203-325-8640 in CT, or from outside the USA.
Subscribe to this Blog
Simply click on the " Subscribe" link at the top left of this blog page and follow the simple instructions.
The John Darer® authored Structured Settlements 4Real® blog is the most prolific structured settlement blog, providing information, commentary and opinion since 2005 with over 5,420 blog posts, and counting!
Why Take a Structured Settlement?
A structured settlement offers guaranteed financial security to personal injury victims, wrongful death survivors and their families. A structured settlement involves a customized stream of payments, provides long-term stable tax-free income, for a period of years or a lifetime. Unlike other income annuities. a structured settlement annuity can have multiple payment streams to address multiple needs in a single contract.
London Market Structured Settlements Experts Bridge building settlement consulting using a humanistic process, providing creative and reliable support for London Market Insurers, Lloyds Syndicates, Claims Professionals and Lawyers
New York Structured Settlement Experts Bridge building settlement consultants who collaborate with clients using a humanistic process, providing creative and reliable advice and support for litigating parties and their lawyers.
FactCheck.org nonprofit "consumer advocate" for voters that Aims to reduce the level of deception and confusion in U.S. politics. They monitor the factual accuracy of what is said by major U.S. political players in the form of TV ads, debates, speeches, interviews and news releases.
NYC 9-11 Health The World Trade Center Health Registry is now the largest registry in U.S. history to track the health effects of a disaster. The federally funded program is information central for first responders and others with health issues from 9-11
Comments and Trackback Policy