Interest Rate Hikes Good For Structured Settlements
John Darer • January 29, 2018
Short Term Structured Settlements Back on Radar 2 Year UST Highest Yield in 10 Years | 10 Year UST Close to 4 Year High
The continuing rise of short term interest rates puts shorter term structured settlements back on the radar.
There are many scenarios where shorter term structured settlements come into play for at least part of the stable cash flow needs of a plaintiff or attorney.
- Commercial contracts
- Age Discrimination in Employment
- Teenage plaintiff with need to help pay for college or graduate school education.
- New York CPLR Article 50-A or 50-B Pain & Suffering component of structured judgments.
- Plaintiffs in their late 50s or early 60s using a structured settlement to help maximize Social Security. by deferring the start date until age 70. Motley Fool writes January 29, 2018 " or you can afford to wait--perhaps because you're healthy, enjoy your job, and you would like to keep working as long as possible, it can make sense to delay starting to collect. If your family members tend to live very long lives and you expect to do the same, that's another good reason to delay, if you can, because you're likely to collect bigger checks for a longer-than-average period". For those born 1960 or later the difference waiting to age 70 to begin receiving Social Security is 62%. [ Source: Social Security Administration]
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Structured attorney fees where the attorney is seeking a short term deferral.
Each person's situation should be considered based on that person's unique set of facts.
The cap rate on index linked structured settlement annuities is a limit set by the insurance company on the maximum interest rate that can be credited to the annuity based on the performance of the underlying index that also helps provide the downside prtection..
Do your financial resources give you enough road, or will the road run out before you do? A structured settlement annuity helps mitigate the risk of outliving your savings, no matter how long you live. A structured settlement can inlcude one or more customized payment streams and types.
USAA Life Insurance Company, an A++ rated insurance company, issues structured settlement annuities with 1%, 2% and 3% COLAs. USAA Life structured settlements are exceptionally compatitive on lifetime benefit payments with long duration certain periods for ages under 35.
Owners of highly appreciated NY businesses or NY real estate may benefit from a structured installment sale tax deferral program as an alternative to a 1031 exchange. MetLife's structured installment sale program is now available in NY and in all 50 states. Call 888-325-8640 for more info
A qualified assignment is part of the process to establish a structured settlement that enables a Defendant, Insurer, or Qualified Settlement Fund, to achieve a complete novation of the future periodic payment claim established by suit or agreement, through a substitution of obligors.
An annuity and a structured settlement walked into a bar, how do you tell them apart? 4structures' John Darer reviews the differences for you right here.
A lifetime structured settlement annuity turns part of your settlement recovery into guaranteed income you can’t outlive that is contractually guaranteed by a regulated life insurance company. A lifetime annuity is sometimes referred to as longevity insurance.
Structured settlement annuities can be very helpful to the budgeting process by providing guaranteed income streams and deferred lump sum payments tailored to specific budget needs and time frames identified in the settlement planning process.
Structured settlement receivables are often deceptfully marketed to investors as annuities. When the originating structured settlement factoring company buys structured settlement payments in a structured settlement factoring transaction, they are buying a receivable not an annuity.
Avoid constructive receipt if a structured settllement or structured attorney fee is to be established. Care must be taken to avoid constructive receipt.
