- Structured settlements provide stable guaranteed income, like ”a job you can never be fired from”, for as long as you want it. Even for the rest of your life if you are no longer employable.
- Provide a core foundation of income to support yourself and support of the family and children, if applicable.. Restore provider status.
- Provide a stable source of income that may help a former prisoner focus on reinvention, retraining, or furthering exploring his/her education but needs a means of support without risk of dissipation.
- Provide a core source of income that puts the former prisoner in a safe place while he/she enters a “decision free zone” to decompress from a long incarceration, before other decisions need to be made.
- Defendants can offer meaningful compensation at all levels that is readily understood.
Positive Tax Developments Regarding Compensation for Wrongfully Incarcerated Individuals
IRC §139F which was enacted December 21, 2015 as part of the Protecting Americans from Tax Hikes Act of 2015 (PATH Act). "In the case of any wrongfully incarcerated individual," IRC section 139F provides: "gross income shall not include any civil damages, restitution, or other monetary award (including compensatory or statutory damages and restitution imposed in a criminal matter) relating to the incarceration of such individual for the covered offense for which the individual was convicted." Damages paid for wrongful imprisonment, however, which are not derived from a personal, physical injury, are not eligible for an IRC section 130 qualified assignment.
Under IRC§139F, a “wrongfully incarcerated individual” is either:
(1) an individual who was convicted of a criminal offense under Federal or state law, who served all or part of a sentence of imprisonment relating to such offense, and who was pardoned, granted clemency, or granted amnesty because of actual innocence of the offense; or
(2) an individual for whom the conviction for such offense was reversed or vacated and for whom the indictment, information, or other accusatory instrument for such offense was dismissed or who was found not guilty at a new trial after the conviction was reversed or vacated.
Form of Structured Settlements in Wrongful Imprisonment Cases
For more information about structured settlements for wrongful imprisonment and the Sudden Money® process, please contact John Darer® at 888-325-8640