Structured settlements expert John Darer reviews the latest structured settlements news, 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, buyers of structured settlement payment rights 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.
Who Issues Structured Settlement Annuity Policies?
Here's one answer...
"Structured settlement brokers...and are responsible for issuing the annuity policy to the plaintiff"- FAQ answer from the website of a California licensed insurance agent and structured settlement broker , retrieved April 29, 2023
According to the Insurance Information Institute however
"Annuities can be purchased through insurance agents, financial planners, banks and life insurance carriers. However, only life insurance companies issue policies". See How are annuities sold? | III
Is an Annuity Policy "issued to the plaintiff" When a Structured Settlement Is Established?
Structured settlement annuities can be purchased by Defendants, Insurance Companies for Defendants, or Qualfied Assignment Companies.
April is Financial Literacy Month – a month intended to raise awareness on planning for a secure financial future. It’s also a time to reflect on the state of your personal finances and explore opportunities to improve them one step at a time.
Publishing what should be basic information directed to consumers, that is bereft of the accurate truth, would not be acceptable standard for someone who just passed a state insurance licensing exam, let only someone with decades of experience in structured settlements.
Shawn Plummer is President of The Annuity Expert out of Atlanta, Georgia and creator of a website, Annuity Expert Advice, that
Anyone can call themselves an expert, but then they get found out
purports to provide annuity expert advice. Unfortunately for consumers, Plummer's website continues to be laden with inaccuracies about structured settlements and cannot be relied upon in the state it was at time of publication. Today's compilation of Plummer's Crack shows that there's considerable room for improvement.
Plummer's Crack 1
"After the settlement money is negotiated and comes to final terms, the court order will request the funds to be placed into a type of income annuity contract called structured annuities".
Fact is that structured settlements are negotiated.
Court orders are only required in certain cases (minors, death cases) to approve the settlement that the parties to the claim or lawsuit have negotiated
When one is referring to the singular, such as "a type of annuity contract" with a "plumber", one generally does not mix and match a single "universal flapper" with a plurality of "elbow joints".
Plummer's Crack 2
"The annuity is an irrevocable stream of regular payments from an insurance company, which is dictated by the court system".
An annuity, such as a structured settlement annuity, is an insurance product which is regulated by the state insurance department, which in certain states (such as New York) may be regulated under the more encompassing "Department of Financnial Services"
For settlements of certain types of cases, a judge, not the court system may need to approve a settlement (e.g. minors, incompetents, or death cases) and the form of distribution.
Plummer's Crack 3
"Structured settlement annuities are similar to either an immediate annuity or a deferred annuity. The structured settlement payments are guaranteed and irrevocable; however, the annuity settlement options can differ from typical income contracts. For example, in a structured settlement payout, the payments may increase or decrease down the road multiple times".
Not all settlement annuities are structured in a payment schedule. For example, settlement money is sometimes paid out in a lump sum within a settlement agreement.
Life Insurance companies issue structured settlement annuities
Structured settlement annuties are a qualified funding asset used to fund structured settlement obligations
Annuities are are a regulated insurance product
Settlements are not a regulated insurance product.
Life insurance companies do not issue settlements
Life insurance companies do not structure settlements
The taxation of structured settlement payments is based on the damages that the payments represent, as set forth the settlement agreement between the parties and the qualified assignment.
Structured settlements.com then becomes further unmoored
"Money you receive from a personal injury or medical event isn’t considered income and so it isn’t taxed like income, according to Section 104(a)(2) of the Internal Revenue Service’s code."
What's Wrong Wit Dat?
The term "medical event" does not appear anywhere in IRC 104(a)(2). An accumulation of gas in the alimentary canal is a medical event. Wine and cheese will be served.
The Internal Revenue Service does not have a code. The Internal Revenue Code (IRC), formally the Internal Revenue Code of 1986, is enacted by Congress and amended from time to time. It is the dometic part of federal statutory tax law in the United States, published as Title 26 of the Unied States Code. The Internal Reveneue Service is the federal agency that implements the Internal Revenue Code
Structuredsettlements.com is a shill for CBC Settlement Funding, a structured settlement factoring company in Conshocken, PA. It and its sister website Annuity.org continue to pump out inaccurate content, is and has been prone to unreliable in my opinion. They mess up the basics and dont seem to care about accuracy depite posting editorial standards.
For more accurate resources check with people who are Certified Structured Settlement Consultants, Master Structured Settlement Consultants or Registered Settlement Planners.
It's Your Settlement and Everyone Wants Your Money Now
Personal injury victims may face the post settlement dilemma of "It's Your Settlement and Everyone Wants Your Money Now". Working with a settlement expert who is also a Certified Financial Transitionist can be helpful to help you manage expectations of family, friends and others and to help sort through, organize, prioritize and help make it easier to process your options. John Darer from 4structures.com LLC, a Settlement planning expert and Certified Financial Transitionist, covers the issues in this introductory video.
What is a Certified Financial Transitionist (CeFT)?
CeFT holders are experienced financial professionals who understand how life transitions change financial situations. It is a level up designation in that CeFT designees must also have earned and maintain at least one other highly respected professional designation such as the CFP, CIMA, ChFC, CDFA, CPWA, CPA/PFS, or CFA.
CeFTs have the comprehensive knowledge and skills necessary to guide clients through a variety of transitions. When they meet with clients, CeFT holders show empathy and know how to listen carefully to their unique needs and emotions so they can make appropriate recommendations.
During their 12-month training program through the Financial Transitionist Institute,a division of the Sudden Money Institute, CeFTs become well-versed in the four stages of transition and use them and different tools to guide their clients through a successful transition during the uncertain and often chaotic times they’re facing.
With their support, you’ll be able to make smart financial decisions that lead to a happy future and help you avoid money problems down the road. Unlike a traditional financial advisor, a CeFT will understand the emotional side of your situation and keep it top of mind when they make recommendations and guide you through your transition.
They can prevent you from making emotional, rather than logical financial choices that take a toll on your finances. Whether you’re anticipating a life transition or found yourself facing one unexpectedly, a CeFT can be a valuable resource and thinking partner.
A "Night Ranger" might say "Sister Christian your time has come, abject nonsense you're not the only one".
Here is what Rachel Christian of Annuity.org says are Key Takeaways about "When You Can Cash Out an Annuity?
1. "There aren't any surrender charges or early withdrawal tax penalties for selling structured settlement payments".
Comment:When you're only getting mere pennies on the dollar from the structured settlement factoring company that Annuity.org's shilling for, who's counting?
2. "Both withdrawing annuity funds andselling structured settlement payments result in paying taxes on the money received".
Comment: Weak effort (a/k/a Bollocks Bolognese) by Rachel Christian and Annuity.org. On June 10, 1999, the IRS issued guidance on the tax treatment to the payee in a structured settlement factoring transacton. In Private Letter Ruling PLR-119273-97 the IRS concluded that the lump sum received from the sale of structured settlement payment rights retained the same tax treatment that it was accorded prior to the structured settlement factoring transaction.Download IRS PLR PLR-119273-97 on Tax Treatment of Structured Settlement Factoring Lump Sum to Payee.
The typical Written, Edited and Financially Reviewed Notation at Annuity.Org is cast into doubt yet again. Here's what Annuity.org claims
Written By Rachel Christian
Edited By Kim Borwick
Financially Reviewed by Rubina K Hossain CFP
Updated: April 25, 2022
Apparently quality control did not verify the facts! So very sad that three people at, or on behalf of Annuity.org, are unable to screw in the proverbial light bulb of accurate information.
Annuity.org shills for Conshohocken PA based CBC Settlement Funding, a leading patron of the content barfing of structured settlement misinformation. See Annuity.org Nonsense.
Annuty.org claimed two Cited Research articles and this is how Annuty.org puffs up their "editorial standards"
"Annuity.org writers adhere to strict sourcing guidelines and use only credible sources of information (Apparently an on-point IRS Private Letter Ruling is not deemed credible), including authoritative financial publications, academic organizations, peer-reviewed journals, highly regarded nonprofit organizations, government reports, court records and interviews with qualified experts"
"...Motoring Why can't you get it right? Cut out the frickin' blight! No more blight tonight"
Parody of Sister Christian by Night Ranger (2011)
Part of my ongoing mission as Structured Settlement Watchdog is to see that consumers have the clearest path to accurate information about structured settlements.
San Francisco's weekly rag, the SF Weekly has published one of the dumbest pieces about structured settlements ever. "All You Need to Know About Structured Settlements and How to Sell Them" is accredited to an unidentified paid sponsor which peddles pennies on the dollar financial smack to consumers. SF Weekly claims to be "San Francisco’s smartest publication. That’s because we take journalism seriously". My question is where does taking in money from paid sponsors, enabling them to unload more crap than on the streets of San Francisco intersect with "serious journalism"?
Lie #1
"It is absolutely legal to sell a structured settlement for instant cash".
What SF Weekly published on January 16, 2021 in exchange for money from a sponsor is a total lie because If you sell your structured settlement you will not get instant cash. A small advance perhaps, but not instant cash.
Lie #2
"When somebody plays a part in another person’s injury or financial losses, they’re compelled by a judge or jury to pay a compensation to the wronged party. This compensation is known as a settlement"
What SF Weekly published on January 16, 2021 in exchange for money from a sponsoris wrong because neither a judge nor jury awards a settlement. The "awarded a settlement" vortex is one of the "Ground Hog Day" of financial illiteracy spread by financial illiterates in (or hired by) the structured settlement secondary market.
Ignoring the legal concept of negligence, one of the examples used in the lie, and published on January 16, 2021 by SF Weekly in exchange for money from a sponsor is "A quack doctor paying a settlement to a patient for prescribing a wrong medication or administering a wrong treatment.
A quack doctor is "anunqualified person who claims medical knowledge or other skills" [Source: Collins English Dictionary].
In order to practice medicine in California, one must be licensed by the Medical Board of California, which states its mission "is to protect health care consumers through the proper licensing and regulation of physicians and surgeons and certain allied health care professionals and through the vigorous, objective enforcement of the Medical Practice Act, and to promote access to quality medical care through the Board's licensing and regulatory functions". [Source: Medical Board of California}
Taking the example of the sponsor of the article that SF Weekly took money from, would a "quack doctor" qualify for medical malpractice insurance to have money to pay a settlement? A big part of an application for medical malpractice coverage involves credentialing. Medical schools attended, Internships, Residency, Fellowship, Other Training, details of prior coverage, practice information, hospital staff appointments, board certifications, list of states where licensed and license numbers. List all counties and states where you are currently practicing, and the corresponding percentages of patient hours expended in each [ Sourced from application from the largest medical malpractice insurer in the United States]
What is medical negligence?
“The elements of a cause of action for medical malpractice are: (1) a duty to use such skill, prudence, and diligence as other members of the profession commonly possess and exercise; (2) a breach of the duty; (3) a proximate causal connection between the negligent conduct and the injury; and (4) resulting loss or damage.” (Lattimore v. Dickey (2015) 239 Cal.App.4th 959, 968 [191 Cal.Rptr.3d766].)
Lie #3
In describing how settlements are paid. SF Weekly Publishes Lie #3 on January 16, 2021, in exchange for money from one of its sponsors , that a settlement is paid as a one-time payment, wherein the offender pays the wronged party compensation they're owed in one go. Alternatively it is described as a structured payment wherein an offender agrees to pay a regulat stream of payments.... The latter is also known as " structured settlements"
An offender is someone who commits an illegal act.
Criminal negligence is the reckless disregard for the safety or life of another human being. An act of negligence that is so serious it could constitute a criminal offense, e.g. the negligence regarding the care of a child is so severe it would make the accused criminally responsible.
Then there is the case of Mens Rea. Did the doctor have it? To illustrate, we'll go old school on this one with a classic scene from "See No Evil Hear No Evil"
Generally structured settlements settlements are entered into by Defendants and Insurers (in some cases qualified settlement funds) as consideration for a release of liability from claimants or plaintiffs.
Lie #4 Published by SF Weekly January 16, 2021, in exchange for money from a sponsor
"You’re not breaking any law by selling your structured settlement. What you’re simply doing is borrowing from your future payments. It is still your money, only that you’re getting it before the due date".
A structured settlement transfer is a sale and irrevocable assignment of structured settlement payment rights for pennies on the dollar. You will ALWAYS lose money.
Lie #5 Published by SF Weekly January 16, 2021, in exchange for money from a sponsor
"This rate usually ranges from 9 to 20 percent, depending on the perceived risk associated with your payment" says the article. Factoring companies charge a discount rate on the sale of structured settlement payments. Sellers get a percentage of the present value. That is literally only pennies on the dollar. But the reality is that rates are available well below 9%. Don't be a sucker consumers!
A structured settlement is negotiated not awarded.
"Pushing the peanut" that you can be "awarded a structured settlement", continues to be a sad fundamental flaw of sectors of the structured settlement secondary market. Since these folks are at odds with the fundamentals one naturally wonders what other aspects of their business they are getting wrong in public facing communications to consumers. Those that get it wrong unfortunately use this information to generate leads for their businesses, which involves soliciting consumers to sell their structured settlements for pennies on the dollar. In the interests of financial literacy, why not just get the correct information into the melons on your collective necks and disseminate correct information? Practice makes perfect.
"Peanut pushers"
Secondary Market Purveyors of Structured Settlement Misinformation
1. "If a lawsuit was settled for your benefit, then you may be awarded a structured settlement payout. [ Google Page 1 12/28/2020]
Purveyor of Misinformation: Annuity Capital. Now there's no sense from a company whose value proposition to consumers is making them "cents" (on the dollar!
2."What Is the Process for Being Awarded a Structured Settlement?" [ Google page 1 12/28/2020]
Purveyor of Misinformation: J.G. Wentworth. The market leader doesn't get it after doing this for nearly two decades?
3. "When a court decides someone is at fault, the surviving family members of a victim can be awarded a structured settlement" [ Google Page 1 12/28/2020]
Purveyor of Misinformation: Structuredsettlements(dot)com . No surprise. No sense. So if Larry ReBar hurts his back at work, his family gets an "atta boy" while Larry gets nothing? Who proof reads this nonsense?
4. "Anyone can be awarded a structured settlement in a lawsuit, though the term most often refers to those who have been awarded a settlement after a personal injury legal case. [Google Page 1 12/28/2020]
Purveyor of Misinformation: Consumer Affairs. A double down on wrong, authored by Clark Kendall, a Personal Finance Expert
5. “A structured settlement is a regular stream of tax-free payments granted to the plaintiff in a civil lawsuit structured settlement is a type of annuity that pays out an award from a civil lawsuit”
Purveyor of Misinformation: Annuity.org Elaine Silvestrini, who cites 3 sources , none of which use the word "grant", because a structured settlement is neither bestowed on someone or a charitable grant. It is the result of a negotiation and compromise and paid as consideration for a release of claims. The sad thing is that the Silvestrini was financially reviewed by Somer G. Anderson, Ph.D., CPA, CGMA, CFE, who despite her impressive professional designations, none have anything to do with structured settlements.
6. "Question: Camila Was in An Automobile Accident. She was Awarded a Structured Settlement...”
Purveyor of Misinformation: Chegg Study Textbook Solutions Business Questions and Answers (12/29/2020). There is a typical finance problems with 4 numerical answers. It's a trick question students. Perhaps the teacher knows it is. Perhaps they don't. Because you cannot be awarded a structured settlement, logically none of the 4 choices is right. Need the back up? Contact me. I'm not interested in discrediting the teacher. I'm interested in seeing that future business leaders and consumers are given accurate information.
7. “It took 5 years, but in 1992, Kelly was finally awarded a structured settlement...” (12/29/2020 Google search result)
Purveyor of Misinformation: Strategic Capital. Not likely Stratcap. In 1992, Kelly could not have been doing her best CeCe Peniston ("Finally it's happened to me right in front of my face, My feelings can't describe it"), because it wasn't awarded to her. It was part of a negotiated compromise. A settlement, not an award!
If you want to learn about structured settlements does it make sense to learn from the stooge of the "animal" that is trying to eat them, leaving very little flesh on the bone of stable secure income?
Annuity.org is the sheep's clothing for wolf CBC Settlement Funding, and is known for posting some incredibly uninformed things about structured settlements through some incredibly poor research and with stunning breadth across the organization's writers
Annuity.org, a long time stooge of CBC Settlement Funding, and "super spreader" of inaccurate information about structured settlements, has a long list of writers who have a bad case of "don't-know-what-the-eff-they're-talking-about-itis" when it comes to how structured settlements work.
Despite citing 7 Research Articles, somehow Kim Borwick, writer and editor " Annuity.Org" is the latest writer to fluff their lines in a July 29, 2020 posting whose purpose is expressly to generate leads for CBC Settlement Funding.
Here are six reasons why Annuity.Org is "Annuity.Wrong":
1. "In general, the IRS taxes only structured settlement money that was negotiated as part of punitive damages or distress that was not caused by a physical illness or injury".
Why Annuity.Org is Annuity.Wrong
In the United States, Article I, Section 8 of the Constitution gives Congress the power to "lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This is also referred to as the "Taxing and Spending Clause. The IRS does not tax structured settlement money or tax anyone for that matter. The Internal Revenue Service (IRS) is a government agency that is a bureau of the Department of Treasury. The IRS is responsible for collecting taxes and administering the Internal Revenue Code, our main body of federal statutory tax law of the United States. In the United States children learn about the Constitution from grades 4-7.
2. "Liquefy your structured settlement"
Why Annuity.Org is Annuity.Wrong
Liquefy means turning something into a liquid. A structured settlement is not liquified in a structured settlement factoring transaction. The term liquidity means an asset that can readily be converted into cash, such as a savings accounts, stocks and so on. A structured settlement is established by a meeting of the minds between settling parties. The parties agree on a schedule of future periodic payments. The Defendant, and/or its insurer assignment the obligation to make those payments to a qualified assignment company which in turn buys a qualified funding asset (most of the time an annuity) to fund the future periodic payment obligation. The assignment company is the owner of the annuity and the annuitant only has right to receive payments. It is the structured settlement payment rights, not the annuity that can be sold, or technically, transferred to a third-party buyer in a structured settlement factoring transaction. The terms of settlement that were agreed to when the structured settlement was established remain in place.
3. "Consult your state attorney general’s office or consumer protection division to confirm that the factoring company you choose has no complaints on file"
To be fair, Annuity.Wrong is protecting its own client CBC Settlement Funding, which has some pretty stinky poop out there that one would never find by going to the Federal or State Attorney General
4. "The court-approval process takes roughly 45 to 60 days, which is why you may want to select a purchasing company that offers cash advances, also referred to as pre-settlement funding"
Why Annuity.org is Annuity.Wrong
Pre-settlement funding provides you with a cash advance on the future compensation that you expect to receive from a claim. If you need money before your claim settles to cover bills and living expenses, pre-settlement funding is one way to get you the cash you need as quickly as possible. A structured settlement factoring transaction is not a settlement, it is a factoring transaction.
It's also not a good idea to get hooked on cash advances. Be mindful that for every $1 you get as an advance, it could cost you $2 or more in structured settlement payments, especially at the rip off out of touch rates that Annuity.org cites as a typical discount rate (see #6 below)
5. "If the court agrees that the sale is in your best interest, you will have to decide on the terms of the sale. You can sell some of your payments, a portion of each payment, or your entire structured settlement".
Why Annuity.org is Annuity.Wrong
The terms of sale and transfer are agreed before the petition goes to the court seeking approval of a structured settlement transfer.
6. "With this formula, the company calculates the “discount rate.” The discount rate is the percentage that factoring companies charge to account for the inherent risk associated with money that they will receive in the future. The discount rate typically falls between 9 and 20 percent".
Why Annuity.org is Annuity.Wrong
The "typical discount rate of between 9% and 20%" would be rip off range in 2020. It's a #totalbs narrative when CrowFly is advertising an average discount rate of under 7%. I've seen deals done in the 4s 5s and 6s, with others. Kim Borwick and Annuity.org are out of touch.
CBC Settlement Funding feasts off the structured settlement payment rights of gullible people who read the unreliable and inaccurate information published by their marketing partners Annuity.org and Structuredsettlements.com. Today's CBC's lead generation company poo poo stew is about the taxation of structured settlements.
Structuredsettlements.com "Crap on Crostini" about Taxation of Structured Settlements
Do I have to pay taxes on my structured settlement?
Structuredsettlements.com answers:
"The short answer is typically no. The tax status of your structured settlement payments is set when your settlement issuing company structures the settlement and rarely changes. Money you receive from a personal injury or medical event isn’t considered income and so it isn’t taxed like income, according to Section 104(a)(2) of the Internal Revenue Service’s code."
11 Reasons Why StructuredSettlements.Com is A Load of BS
The Internal Revenue Service does not have a code, except perhaps a figurative "nudge nudge, wink wink" when its enforcement team is about to storm the offices of a factoring company that is not in compliance with a structured settlement protection act.
The Internal Revenue Code, formally the Internal Revenue Code of 1986, is the domestic portion of federal statutory tax law in the United States, published in various volumes of the United States Statutes at Large, and separately as Title 26 of the United States Code. It is organized topically, into subtitles and sections, covering income tax, payroll taxes, estate taxes, gift taxes, and excise taxes; as well as procedure and administration. Its implementing agency is the Internal Revenue Service [ Source: CCH Tax Law Editors ]
There is no such thing as a "settlement issuing company".
A structured settlement is a form of settling a claim or lawsuit.
A settlement is a compromise between adverse parties in the claim or in the lawsuit.
A structured settlement annuity is one of the permissible qualified funding assets as set forth in IRC 130(d).
A structured settlement annuity issuing company does not structure the settlement, the compromising parties do.
How structured settlement payments are taxed has to do with the nature of the damages the payments represent.
Structuredsettlements.com represents that the tax status rarely changes. What would be the rare instance where the structured settlement was tax free and then it changed?
On August 21, 1996, President Clinton signed the Small Business Job Protection Act of 1996. Taxation of damages was affected by this bill. The Act changed the exclusion from gross income of damages received on account of personal injury or sickness to apply only to damages which are received on account of a physical injury or physicalsickness. If the claim resulting in damages or settlement payments has its origin in a physical injury or sickness, then all damages (other than punitive damages) that flow from that injury or sickness are treated as payments on account of that physical injury or sickness. If, however, the claim has its origin in emotional distress, even if subsequent physical injury or sickness is alleged, damages or any settlement payment made is taxable because it stems from a nonphysical injury. (Damages which reimburse the cost of medical treatment are not taxable).
What is a medical event? If you break wind is it a qualifying medical event, or go to the podiatrist to remove an ingrown toe nail is that a medical event that gives you the ability to structure? Of course not. None of them represent damages which are received on account of physical injury or physical sickness.
"Sellers of structured settlements have been asking why are discount rates for their cases so high when the Federally set interest rate is so low.
The answer to this is basic economics:
1. The Fed rate is low because there is reduced market activity and the Fed is trying to stimulate such activity.
2. Demand for money is high but lending supply is low (this is what they mean when they say money is tight).
3. While the Fed rate is low, try to get a mortgage or loan, or worse yet a credit card interest rate that is in the single digits".
Source: Genex Capital website, retrieved 6/26/2019
Comments
The St Louis Fed chart here show not much tightening for commercial or industrial loans for large and middle market firms. Is Genex Capital one of those, or is Genex Capital just small potatoes? JG Wentworth has a 4% cost of money. And RSL Funding claims that "you've likely been ripped off by JG Wentworth" in its latest marketing message, implying a low cost of money. What does that mean in the context of what Genex Capital has stated? Why are deals getting done in the 5-6% range, when Genex Capital appears to be trying to justify rates much higher?
The data straight from the Fed seems to conflict with the Genex Capital explanation
Moving on to the Mortgage Rates Mosh Pit. The statement "While the Fed rate is low, try to get a mortgage or loan, or worse yet a credit card interest rate that is in the single digits" is a
The structured settlement factoring industry has a preponderance of "sucks" when it comes to dissemination of accurate information. In doing so, with a few exceptions, the structured settlement secondary market does a real disservice to consumers and has done so for a very long time.
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 2023 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].
Structured Settlement Annuity Companies 2023 Which life insurance companies issue structured settlement annuities going into 2023? 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.
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 Ways You Can Structure Your Settlement Payments. 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 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.
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) or changed its name and you're trying to track them down, here you go! The list is regularly updated. Last updated September 14, 2023
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.
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.
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STRUCTURED SETTLEMENTS 4REAL® Blog Is a Popular Source of Structured Settlement News and Information, John Darer Reviews, Settlement Planning News and Financial Solutions for over 17 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 40 years financial services experience and more than 29 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.
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If you would like to speak with John he can be reached at (888)325-8640
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Last updated October 8, 2023
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
"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 2023. 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.
Structured Settlement Watchdog® is a registered trademark of 4structures.com LLC.Reg. 4711312 All rights reserved.
John Darer® is a Registered Trademark of John Darer, Stamford CT. Reg. 4674907 All rights reserved
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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) vist 4structures® Structured Settemlent 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.
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The John Darer® authored Structured Settlements 4Real® blog is the most prolific structured settlement blogger with over 5,330 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.
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