QUALIFIED STRUCTURED SETTLEMENTS

QUALIFIED STRUCTURED SETTLEMENTS

“Qualified” Structured Settlements allows the plaintiff to direct the placement of dollars awarded to them in a wrongful death, physical personal injury, and/or worker’s compensation lawsuit into a series of annuity type instruments that provides tax-free cash payments to the plaintiff on an installment or periodic basis.

In cases involving wrongful death, physical personal injury and State worker’s compensation cases, “Qualified” Structured Settlements are applicable. These cases “qualify” for Internal Revenue Code (IRC) Section 5891(c)(1), which gives these types of cases taxation benefits based on an arrangement that meets the following requirements:

1. The suit or agreement must include for periodic payment of damages
excludable from gross income under IRC Section 104(a)(2); or

2. The suit or agreement must include for periodic payments of compensation
under any worker’s compensation law excludable under IRC 104(b)(1).

Additionally, the periodic payments must be of the character described in subparagraphs (A) and (B) of the IRC Section 130(c)(2) and must be payable by a person or party who is party to the suit or agreement, or by a person or party who has assumed the liability for such periodic payments under a Qualified Assignment in accordance with IRC Section 130.

“Qualified” Structured Settlements allows the plaintiff to direct the placement of dollars awarded to them in a wrongful death, physical personal injury, and/or worker’s compensation lawsuit into a series of annuity type instruments that provides tax-free cash payments to the plaintiff on an installment or periodic basis.