What Exactly is Being Assigned
in a Qualified or Non Qualified Assignment?
Important tip concerning the fundamentals
of structured settlement documentation
When a structured settlement is established. the sequencing goes as follows:
- Periodic payment obligation is established in the Settlement Agreement and Release
- The obligation to make future periodic payments is assigned.
- Concurrent with the assignment the Assignor [(which is the Defendant or his/her/its insurer(s)], funds the future periodic payment obligation by check or wire to the assignment company.
- The funding asset, generally a structured settlement annuity, is purchased by the assignment company, or assignee.
This is the sequencing regardless of whether there is a qualified assignment or non qualified assignment.
For more information please refer to How Structured Settlements Work
Last updated July 8. 2023
