Articles tagged with: Structured Settlements
California Senate Bill 1408, known as the California Life and Health Insurance Guarantee Association Act, makes significant coverage changes for structured settlements and annuities.
Structured settlements are tax efficient and can have asset protection and spendthrift advantages too. Like other tax deferral ideas, their results are more impressive the longer their term and the slower they pay out. They aren’t for everyone, and you shouldn’t structure every nickel you receive. Once they are set up, they generally can’t be changed.
The end of the year usually means a last-minute scramble to reduce taxable income. Pushing income into 2011 will provide temporary tax relief but another option could provide even longer-term tax benefits: creating tax-deferred fee structures with payments (and thus taxes) paid over time.
Ricardo’s determination and professionalism to achieve the best results on behalf of his clients will be recognized by CAALA when he is awarded the 2010 Trial Lawyer of the Year award at the association’s Installation and Awards Dinner on January 22. We’ll be there to offer our congratulations for a job well done.
The ads are everywhere–online, on radio and on TV. They offer quick cash for structured settlement annuities–court-ordered payment structures that are designed to provide a steady, reliable and tax-free stream of income to injured parties. The ads are particularly tempting during these hard economic times.
The recent life and death of a jury award recipient(Schulman) is a tragic but sobering reminder of how lump sum awards or settlements can be squandered. was a homeless man when an 18-wheel truck ran over his legs.
A Wall Street Journal article recently shed light on a relatively new way factoring companies are earning income from structured settlement annuities. In settlements involving personal injuries and some non-personal injuries, the injured party often agrees to an annuity that pays out settlement funds over time instead of in a single lump sum. The annuity income is tax-free. In addition, structured settlements enable injured parties to better plan their financial future. However, when an unforeseen financial emergency arises and money is needed fast, injured parties can sell their annuities for cash to factoring companies at deeply discounted rates.
For some the structured settlement process is best illustrated by sample structures.