Structured Settlements

The US Congress enacted legislation which allows the future periodic payments of certain types of injury and sickness claims (or settlements) to be income tax-free. Structured Settlements are often the preferred solution used to preserve the tax-free status of the future periodic payments. By configuring the settlement of a claim with a Structured Settlement, the stakeholders (the Injured Person and the Defendant) receive significant benefits from the win-win opportunities created by the Structured Settlement. Notwithstanding the occurrence of an otherwise unfortunate injury event, Structured Settlements can at least provide those who have suffered with a feeling of safety and security.

Advantages of Structured Settlements:

Structured Settlements are commonly used in the following types of claims:

IMPORTANT – NO Constructive Receipt

The tax regulations enacted by the US Congress:

Non-Injury Claims – Non-Qualified Structured Settlements:

Claims that do not qualify under Section 104(a)(2), 104(a)1, and 130(c) of the Internal Revenue Code can be Structured so as to provide accumulated interest as income tax-deferred.