Many commercial transactions and disputes can be resolved using Non-Qualified Annuities (NQAs). For example, you can use NQAs to schedule payments into the future for property and environmental disputes, disability policy buy-outs, divorce settlements, lump sum lottery winnings, fraud claims, breach of contract settlements, and other similar claims. By doing so, income can be deferred into future years helping to spread the tax liability over time. Tax issues can be very important in designing a financial solution that satisfies all involved.
Annuity payments can be easily customized to match the needs of the parties involved in each transaction. For example, periodic payments can be guaranteed for a specific period of years or can be made for the life of the recipient. This flexibility makes it faster and easier to conclude transactions.
When utilizing an annuity for a contract settlement, documents are generated so that the obligation to make future payments is transferred to a corporate assignment company that purchases the annuity from a highly rated Life Insurance company. Returns are fully guaranteed since future periodic payments are not subject to either interest rate risks or market fluctuations.
Contact one of our experienced Consultants for more information on contract settlements and to receive sample settlements for your review.