Treasury Funded Structured Settlements (US Treasury Bond)

Treasury Funded Structured Settlements (US Treasury Bond)
Structured settlements funded with United States Treasury Bonds offer an alternative funding instrument for the most conservative plaintiffs and attorneys. Treasury Funded Structured Settlements add the security of 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 §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. 

Under the TFSS program, through Structured Assignments Inc, every payee in a qualified structured settlement is given secured creditor status. In the unlikely event anything were to happen to the trustees, the payee would "perfect" their security interest and take possession of the Treasury obligations funding their structured settlement.

The assets of Structured Assignments Inc. are held in trust. Under Federal law, assets held in a trust by trustees are not part of the trustee's  assets, nor are they legally subject to claims of creditors (Title 12, Section 194 of the United States Code). Midwest Trust further secures the payments by issuing a "Keep Well Agreement", pledging that the assets held in the Structured Assignments Inc. trust may not be used for any purpose other than paying future periodic payment obligations of Structured Assignments Inc.
United States Treasury Bond Funded Structured Settlements are certainly worth a look. 
Plaintiff lawyers should not simply avoid a structured settlement during periods of 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 cases 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.

The Trade Off Between Treasury Funded and Annuity Funded Structured Settlements
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. Furthermore, one cannot contract for lifetime payments, which are the province of annuity funded structured settlements.

For more information on United States Treasury Bond Funded Structured Settlements please contact Master Structured Settlement Consultant John Darer at (888)325-8640. The call is toll-free in the United States.
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