Structured settlements funded with United States Treasury Bonds offer an alternative funding instrument for the most conservative plaintiffs and attorneys. Treasury Funded Structured Settlements have unparalleled security with United States Government obligations, widely regarded as among the safest financial instruments available and rated AAA by Fitch, Aaa by Moody's and AA+ by S&P.
Internal Revenue Code Section 130(d) states that the term "qualified funding asset" means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States.
United States Treasury Bond Funded Structured Settlements are certainly worth a look.
Plaintiff lawyers should not simply avoid a structured settlement due to global financial uncertainty because such a decision could have life impacting consequences to a tort victim. This is because that once a release has been signed (either with a defendant, insurer or qualified settlement fund trustee) the tax benefits of a structured settlement are forever lost.
A Treasury Funded Structured Settlement may be used alone, in conjunction with a structured settlement annuity as a part of a diversification strategy, or using the annuity as the lifetime payment “caboose”. Payments from a "Treasury Bond Trust" can pour over into a
Settlement Preservation Trust or Settlement Planning Trust.
A Treasury Funded Structured Settlement can be used to fund settlements in a wide variety of case involving either taxable or non taxable damages, including (but not limited to) Structured Attorney Fees; Divorce, Construction Defects, Breach of Contract, Workers Compensation, Disability Buyouts, Employment Litigation, Structured Installment Sales, Legal Malpractice, Environmental clean ups, Lottery and other contests, Punitive Damage, Property Disputes.
There is a trade off to the added security offered by using a United States Treasury Bond Funded Structured Settlement, the yield is generally lower than annuity funded structured settlements. Innovative T-Bond trust providers however, use a combination of Treasury Inflation Protected Securities (TIPS) where the bond's underlying principal rises and falls with changes in the inflation rate ( currently the CPI-U), and STRIPS to guarantee deferred lump sum payments. Interest paid on the TIPS adjusts along with the principal.
For more information on United States Treasury Bond Funded Structured Settlements please contact John Darer at (888)325-8640. The call is toll-free in the United States.