by John Darer CLU ChFC MSSC CeFT RSP CLTC
My latest video on Legal Broadcast Network begins to explore the use of life insurance in the settlement planning process for both plaintiffs and plaintiff attorneys.
For more information click Life Insurance in Settlement Planning
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by Structured Settlement Watchdog
This author is aware of a structured settlement firm whose members routinely use a small excerpt of a published document to compete with another firm. The complete published document puts the small excerpt into context but the offensive structured settlement firm in question chooses to omit those material facts for its own financial gain. It's an embarrassment to the integrity of the industry.
There is nothing wrong with competition. Complete comparisons however, are the order of the day.
This author intends to expose the firm in question in due course but will hold off approximately 30 days in the hopes that the firm in question reads this blog or this blog is pointed in their direction by someone else in the industry and they reconsider this behavior.
It is possible that there is more than one firm that uses the same published document in the same manner as the firm that is the subject of this post.
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What a brilliant strategy!
Is NYU law student Jeremy Babener being used as a "cheap but erudite tool" of those who collectively have hundreds of thousands of dollars vested in a project to convince Treasury to issue guidance as to IRC 468B concerning the use of single claimant qualified settlement funds, but have seen those efforts , (including the work of high priced legal talent) languish for years?
The circumstantial evidence:
Babener is from Oregon, home of "the great silverback" Jack Meligan of
Settlement Professionals, who was head of the Society of Settlement Planners at
the start of the project
Primary acknowledgments on the QSF paper are for Full review of the paper to follow, but at first glance it smells of the influence of the Word on the street is that Babener was at the recent Society of
Richard B. Risk and Patrick Hindert, also part of the original crew.
aformentioned
Settlement Planners annual meeting at the behest and expense of an SSP member.
Convincing Treasury to issue guidance likely means that:
More structured annuity companies will agree to take qualified assignments from single claimant qualified settlement funds.
Some planning opportunities may be easier with a single claimant qualified settlement fund, particularly in certain jurisdictions.
Many plaintiff advisers can make more money because those who feel uncomfortable using a single claimant settlement fund simply on the strength of a legal opinion, will feel more at ease with using the approach.
Many large institutions will be attracted to the business because by controlling all the settlement dollars it becomes more cost effective to enter the industry than a two broker or multi broker commssion sharing system.
Controlling all the settlement dollars provides a means for settlement consultants to have greater resources to contribute to trial lawyer associations. Let's call a spade a spade.
Stay tuned. More to come.
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by John Darer® CLU ChFC CSSC RSP
The New York Insurance Department's Office of General Counsel has answered a question that could prove important for holders of Long Term Care Insurance policies in New York.
The question:
"Would a NY resident insured under an individual long-term care policy purchased in New York, with a maximum lifetime value of $393,000, be protected under LICGC (of New York) if the insurer becomes insolvent either before or after the insured enters a long-term care facility?"
The answer can be found at this link http://www.dfs.ny.gov/insurance/ogco2009/rg090413.htm
NOTICE: New York State Insurance law prohibits the use of the LICGC in the sales or solicitation of insurance. This is not a solicitation. The above is commentary being provided expressly and solely for the education of other settlement planners, financial planners and lawyers. The above link leads to New York Insurance Department published statements and none of the material is not intended, nor may it be used by anyone in the sales or solicitation of insurance.
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The Obama administration seeks to raise nearly $60 billion by closing loopholes according to various news reports on May 11, 2009. These potential loophole closings have a potentially significant impact on settlement industry stakeholders
. "Another Loophole closing?"
The tax "garrotte" includes items related to the estate tax, and also revived a bid to cap itemized deductions wealthy individuals can claim.
Purportedly the fund raised from the estate tax and other changes would go to beef up a healthcare reserve fund, a $634 billion pot of money President Barack Obama wants to use to revamp the healthcare system and expand insurance to tens of millions of Americans who lack it.
The White House wants to raise $24 billion over 10 years by tightening rules for the estate tax, which affects that portion of an inheritance that exceeds an amount excluded by law ("exempt amount").
Currently, the exemptions are the first $3.5 million of an individual's estate and $7 million of a couple's estate.
Reuters reports that "lawmakers are likely to tackle the estate tax issue this year to avoid confusing changes over the next few years. The tax-cut package enacted under President George W. Bush provides for the estate tax to be repealed for fiscal year 2010 -- October 1, 2009 to September 30, 2010". Beginning fiscal 2011 Estate taxes are scheduled to revert back to an exemption of $1 million and a top rate of 55 percent.
Other tax changes include denying tax deductions for companies with punitive damage claims,
Recognizing that Congress is going to need to find money from somewhere for its ambitious agenda and to impose fiscal discipline, one must recognize that increased planning opportunities and a growing need for solutions will result if these changes come into effect.
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