HELPING YOU UNDERSTAND A STRUCTURE
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.
Byrd Settlements is licensed and works regularly with the following life insurance companies:
& First Berkshire Hathaway
Life Insurance Company
New York Life
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!
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Read the latest news about settlements & insurance industry.
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.
by John F. Wasik
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.
by Robert W. Wood
Your only exposure to the term “structured settlement” may be late night TV ads hawking immediate access to your money. “It’s your money,” they’ll exhort. “Cash in your structured settlement and use your money now!” If you are (or were) a successful plaintiff in a lawsuit, your contact with structures may be more personal. You may have received one, be evaluating one now, or have considered one but opted for cash.
by Robert W. Wood