MetLife is offering reinsurance agreements that enable the transfer of periodic payment obligations not assignable under Internal Revenue Code Section 130 from one licensed insurance company to another.

Reinsurance agreements are commonly used to fund workers’ comp settlements and ongoing periodic payment obligations including transfers from self-insured employers. Reinsurance agreements provide language that releases the initial carrier of future liability

Other uses for reinsurance agreements include policy buyouts, environmental claims, property damage claims, disability claim settlements and funding disability benefits, punitive damages, wrongful termination, discrimination and harassment claims, other non-physical injuries and standalone attorney fee structures.

Please let me know if you’d like more information on how reinsurance agreements might be of benefit to your client.

With more than 30 years of experience and having placed more than $1.75 billion in annuity premiums and U.S. Government notes, we provide support and legal advice during all phases of settlement negotiations, court hearings, mediations, arbitrations and settlement conferences.

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From: Pat Farber’s Structured Settlements Alert for December 2010

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.

These fee payments do not enjoy the same tax-free benefits of structured settlements for, say, an injured party, but taxes are due only on the portion of payments actually received in the year they are received.

This can be beneficial to attorneys who wish to:

• delay income to later years when their marginal tax bracket may be lower,
• guarantee a predictable and stable income stream over a period of years– not prone to market fluctuations or the health of the legal practice,
• set aside money or arrange lump sum payouts specifically for retirement or children’s educational costs,
• possibly reduce tax obligation by spreading out income over time.

The terms of the structured fee schedule must be determined at the time a case is settled. If you have a case wrapping up by the end of the year, you may want to consider consulting with your tax professional to determine if structuring your fees makes sense. Of course, creating attorney fee structures could be beneficial regardless of the time of year.

Here is an article on the subject (my interview with Mark Simurda, a CPA and tax partner with Lesley, Thomas, Schwarz & Postma, Inc., in Newport Beach) about structuring settlement fees.

Do Structured Fees Make Sense for Your Practice? http://patrickfarber.com/pat-farber-headlines/do-structured-fees-make-sense-for-your-practice/

Patrick C. Farber Structured Settlements Broker - With more than 30 years experience, Pat has placed over $1.75 billion in annuity premiums and U.S. Government notes. He specializes in settlements involving medical malpractice, physical injury, non-physical injury, product liability, workers’ compensation, mass torts, punitive damages, employment, construction defect cases and attorney fees in court hearings, arbitrations and settlement conferences–all at no cost to clients. E-mail Pat personally at p...@patrickfarber.com or call 800-734-3910.

For some, the structured settlement process is best illustrated by example. If you are considering a structure, peruse the samples below or use the SAMPLE STRUCTURES menu button above to view additional information on medical malpractice, physical injury, workers’ comp, punitive, & non-qualified cases.

Physical Injuries:
Click the headers to view details.

64-Year-Old Male Suffers Stroke After Using Over-the-Counter Cold Medicine
A 64-year-old male suffered a stroke after using an over-the-counter cough medication that contained the now banned substance phenylpropanolamine (PPA). The man used a single recommended dose of the medication for a runny nose and cough. After complaining of a severe headache, he was taken to the hospital where he was diagnosed with a cerebral hemorrhage. He is now permanently disabled.

Worker’s Comp:
Click the header to view details.

52-Year-Old Man Suffers Upper Body Burns
A 52-year-old man suffered upper body burns when he was coated with molten plastic from a faulty plastic injection molder case. The machine was not equipped with pressure relief valves.

Medical Malpractice:
Click the header to view details.

35-Year-Old Female’s Sub-arachnoid Hemorrhage Misdiagnosed, Suffers Permanent Brain Damage
A 35-year-old female suffered from headaches, nausea, vomiting, blurred and double vision. She was told she had the flu. The pain continued for several weeks. Multiple health care providers failed to consider a sub-arachnoid hemorrhage as a possible cause of her suffering. The patient’s aneurysm ruptured, causing permanent brain damage.

Non-Qualified Settlements:
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11-Year-Old Male, Case Involving Verbally Abusive Coach
A 11-year-old male was awarded $75,000 from a case involving a verbally abusive basketball coach. The constant bullying and verbal abuse at practices and games caused great damage to the boy. A tax-deferred education fund was purchased for the benefit of the minor.

Punitive Damages:
Click the header to view details.

35-Year-Old Male Killed by Drunk Driver; Wrongful Death Claim
A 35-year-old worker died when the equipment he was standing on fell. Liability was established against the manufacturer and installer of the machine on which the worker was standing.

For more information on structure planning, please contact us.