Structured Settlement Annuities
Structured Settlement Annuities
A structured settlement annuity, commonly referred to as a structured settlement, allows a claimant to receive all or part of a workers’ compensation, wrongful death, or personal injury settlement in a series of periodic payments free from income tax. Structured settlements are also employed in non-physical injury settlements to offer tax-deferred income rather than dealing with taxes on a lump-sum settlement payment.
If you are seeking to establish a structured settlement, Jay Scarola can advise you on your structured settlement annuity options. These options include:
- Single Premium Immediate Annuities
- Fixed-Indexed Annuities
- Multiple-Year Guarantee Agreements
- Deferred Income Annuities
How A Structured Settlement Works
The choice to employ a structured settlement must be made before the settlement agreement is finalized. After both parties agree to the structured settlement details, the claimant frees the defendant (or insurer) from any liability. The defendant or insurer then allocates settlement funds to a third-party assignment company, who assumes liability and buys an annuity from a structured settlement carrier. The carrier subsequently makes periodic payments according to a previously established amount and timeline. Structured settlements can be funded through proceeds from almost any size settlement. Often, many structured settlement providers structure amounts as low as $10,000. Ultimately the choice to establish a structured settlement is up to the claimant, and most find that a structured settlement offers many more benefits than a lump sum cash payment.
How A Structured Settlement May Benefit You
Benefits of a structured settlement include:
- 100% income-tax-free for wrongful death and physical injury cases: Under Section 104(a) of the Internal Revenue Code, payments (including growth) for wrongful death and physical injury cases are free from federal and state income tax
- 100% income-tax-deferred for non-physical injury cases: Payments (growth included) for non-physical injury cases have the benefit of being tax-deferred.
- Payments are guaranteed: The schedule of payments is established in the beginning of the transaction, securing steady stream of reliable, safe income for the claimant
- The rate of return is secured: Thanks to the locked-in rate of return, injured claimants have peace of mind that market volatility will not impact their structured settlement payments
There are no overhead fees or expenses with structured settlement annuities, making them a smart investment option: There are no overhead fees or expenses, which along with preferential tax treatment allow structured-settlements to compete with traditional investments.
Contact Us Today
For claimants who may not want to establish a structured settlement annuity, there are also other investment options Jay Scarola can help navigate. Jay Scarola has spent the last two decades helping catastrophically injured clients optimize their settlement proceeds through the long-term financial stability and security of a structured settlement. If you are seeking to establish a structured settlement, you may need a console to maximize financial security. Jay Scarola can connect you with the specialists you need to establish your settlement proceedings. Call Jay Scarola to talk about settlement trust services today.