Here we’ve provided you with the IRS code, life insurance companies and government protections, which when combined guarantee the security and safety of structured settlements.
Sections 104 and 130 of the Internal Revenue Code set out the relevant tax law for structured settlements.
In The Periodic Payment Settlement Act of 1982 (P.L No. 97-473), Congress adopted specific tax rules to encourage the use of structured settlements to resolve physical injury lawsuits.
First, Section 104(a)(2) of the Internal Revenue Code was amended to clarify that the full amount of the periodic payments constitutes damages, which are tax-free to the victim – unlike the investment earnings on a lump sum.
Second, Congress adopted Code Section 130 to provide a mechanism where injured victims could receive the stream of damage payments from a financially secure institution through the “qualified assignment” process described earlier.
Download Related Internal Revenue Code
Byrd Settlements is licensed and works regularly with the following life insurance companies:
Each state has its own guaranty fund or guaranty association. The purpose of these funds is to protect consumers in the event an insurance company in their own state completely fails.
The additional guarantee from your state!
Resources & Articles
Guardians of Trust
The fundamental reason for having a trust protector is to have an independent adviser who can monitor how your estate is administered and distributed over time. If a dispute arises, the protector may have the power to make changes without going to court.
Trust Protectors — What They Are And Why Probably Every Trust Should Have One
The Protector is so useful, and it has become so commonplace, that the concept should almost always be discussed between planners and those looking to form trusts.
How Structured Settlements Work
Structured settlements are a long-term solution that provide victims of physical injury and wrongful death lawsuits with financial security and guaranteed tax-free payments. Learn more about how they work.
Benefits of Structured Settlements
A structured settlement is a proven, effective solution for the financial needs of personal injury victims. For years, structured settlements have been widely used in personal injury settlements to compensate injury victims.
Byrd Settlements makes a larger contribution to the settlement process and clients’ lives than only structured settlements. Over the last 4 years, we have developed relationships and negotiated fees with both Trustees and Financial Advisers who provide exceptional service; and we made sure they will offer a better price for our clients.