What is a structured settlement?

 

A structured settlement is a stream of customized periodic and lump sum payments funded by annuities with a fixed rate of return funded by highly rated Life insurance companies. Now that the technical terms are out of the way, a structured settlement is a financial vehicle built to fit claimants’ needs both now, and in the future.  

 

If a claimant is physically injured, the payments are tax-free.  For a claimant, a structured settlement presents financial security in a time of uncertainty; due to the fact structured settlements are protected and governed by Federal legislation and IRS regulations.

 

 Who should use Structured Settlements?

 

* Those who experience a loss amount greater than $10,000 and there is an opportunity to defer some or all of the payments for 3 or more years

* A minor child with a loss of $5,000 or more

* An injured party who desires to receive a steady stream of income over a longer period of time

* Injured people who have difficulty managing large sums of money

* Injured parties who want to shield settlement monies from future taxation on earnings made from personal investments with settlement funds

* Severely injured people who will require future care

 

2014 NSSTA Annual Meeting

Registration is now open for the April 1-3, 2014 meeting of the NSSTA.




Congressman John Lewis Schedules Inaugural Meeting of the Congressional Structured Settlements Caucus

There is still time to get your Congressional Representative to join the Caucus!




Employment Liability & Other Taxable Claims...

John McCulloch is featured in the June 2013 edition of The Self Insured.




CMS Releases Guidebook March 2013

CMS Published Guidance for WC MSA procedures




Video! Structured Settlements Help Resolve Claims

 

John J. McCulloch, JD, WCLS, CMSP, of the National Structured Settlements Trade Association (NSSTA) explains in this short 2013 A.M. Best video what claims professionals should know about structured settlements.




Consultants' Corner: True Auto Liability Case Story

We hear the term structured settlement on a regular basis and for those of us in the industry it’s an option, a resolution, but often times the faces and the stories remain unknown.  The work you do is not in vain, because behind every structured settlement there is a story. Welcome to Consultants’ Corner, where structured settlements come to life with real cases and true stories.

 

An overlooked back pain causing devastation turned into a lifetime provision thanks to a structured settlement presented by Kim Smith.




Consultants' Corner: True Med Mal Story

 

We hear the term structured settlement on a regular basis and for those of us in the industry it’s an option, a resolution, but often times the faces and the stories remain unknown.  The work you do is not in vain, because behind every structured settlement there is a story. Welcome to Consultants’ Corner, where structured settlements come to life with real cases and true stories.

 

 

Dan Rogers saves the day and brings light to a dark situation with a structured settlement geared to protect Medicare and the Plaintiff in a medical malpractice case.

 

 




The Taxable Equivalent Yield of a Structured Settlement – Don’t Forget Local and State Taxes

When comparing a structured settlement to other personal investment options, remember to take into consideration not only Federal Taxes you will pay on interest earned, but State and Local taxes as well.