4Structures.com - We Know Structured Settlements
Ask questions Questions?
Call Us!
  Need Structured Settlement Quote?
Structured Settlements
Structured Settlements Structured Settlements Structured Settlements
Structured Settlements
About 4structures.com structured settlement structured settlement examples plaintiff structured settlements Click here and see what items of interest for defendants, insurance adjusters and their attorneys Structured Settlement FAQ, Structured Settlement Glossary, Structured Settlement Links, Structured Settlement Annuity Company details, Structured Settlement Newsletter sign up, Structured Settlement Protection Statutes, State Insurance Guarantee Laws 4structures Insurance Services 4structures.com has over 40 pages of searchable structured settlement and settlement planning content structured settlement videos
The Basics
Font Size:  Decrease Font Size Increase Font Size
Tweet Follow 4structures.com on YouTube

Structured Settlements

The structured settlement process involves a negotiation where the parties come to an agreement on a schedule of benefits to match Claimant's needs and the Life Insurance Carrier(s) that will issue annuity payments or Treasury Funded Structured Settlements, an alternative "qualified funding asset" permissible under IRC 130(d).

  • Defendant/Insurer or Qualified Settlement Fund trustee - by contractual agreement, promises to pay future periodic payments to the Plaintiff/Claimant with all or a portion of the negotiated personal injury damages in exchange for a release.
  • Plaintiff/Claimant - agrees to release the claim in exchange for the promise by the Defendant/Insurer or QSF Trustee to make one or more future benefit payments to claimant in addition to immediate cash items (for attorney fees, liens)
  • Defendant/Insurer or Qualified Settlement Fund trustee - makes an assignment of its obligation to pay future periodic payments to a third-party ("assignee"). The assignee assumes this obligation. The plaintiff agrees to the assignment in the release and agrees to look to the assignee as the obligor for the promised future periodic payments. The assignee receives funds from the Defendant/Insurer or QSF Trustee and uses these funds to purchase an annuity contract, or alternative permissible "qualified funding asset", in an amount sufficient to fund the periodic payment obligation it has assumed. The assignee owns the "qualified funding asset" and may either make payments directly to the Plaintiff/Claimant or may direct that the annuity issuer make the payments. If an alternative permissible "qualified funding asset" is used, there may be a segregated trust for each claimant that holds the alternative permissible "qualified funding asset".

In some instances, particularly where the damages do not qualify under IRC Sections 104(a)(1) and 104(a)(2), one can consider solving the problem via the use of a non-qualified assignment program.

All parties involved reach agreement as to the supporting documentation necessary for the completion of the settlement. In most cases, the documents will consist of the Settlement Agreement and Release, any required court orders or probate approvals, the annuity contract and, if applicable, an assignment agreement.

It's important to note that the structured settlement process is one component of a greater settlement planning process and that depending on the facts of a particular case a multiple disciplinary, multiple product solution may be appropriate.

structured settlement information

Want to Know How Structured Settlements Work? Click to open

Want your own copy of the structured settlement flow chart?
Bookmark and Share
© Copyright 2000-2015 4Structures.com, LLC. All rights reserved. Contact Us | Structured Annuity Companies | Ethics | Blog | FAQ | Glossary | Sitemap | Privacy Policy | Terms and Conditions
Structured Settlements
Client Zone Username Password  I forgot my password.
Structured Settlements
HACKER SAFE certified sites prevent over 99.9% of hacker crime. 4 Structures.com, LLC is a BBB Accredited Business. Click for the BBB Business Review of this Insurance Services in Stamford CT Structured Settlements - Service Providers
4structures.com Webutation
Follow 4structures.com on YouTube find structures on Facebook
4structures.com, LLC, The Structured Settlements and Settlement Planning Company 43 Harbor Drive, #309 Stamford, CT 06902 USA

Securities and Insurance Products are NOT Insured by the FDIC, nor by any other Federal or State Government Agency,
are NOT a Deposit of and are NOT Guaranteed by a Bank or any Bank Affiliate, and MAY lose value.
Brokerage services offered through CertusSecurities, Inc., Member FINRA and SIPC. Accounts carried with National Financial Services LLC, a Fidelity Investments Co.
Financial Advisory services offered through Advocacy Wealth Management Services, LLC. Fiduciary and custody services may be offered through CertusWealth Trust, a
division of CertusBank, N.A. or a third party entity. Insurance products offered through 4structures.com LLC. Certus Bank and CertusSecurities are subsidiaries and trademarks of CertusHoldings, Inc.