Where a structured settlement is part of the settlement, the consideration will be in the form of "cash and future periodic payments". The periodic payments must be specified as part of the consideration in the release or an Incorporated addendum/exhibit.
The Rush to Tender | Avoid conflicting release documents
Where a structured settlement is part of the the settlement of any legal case, special attention must be paid by defense and plaintiff counsel to avoid conflicting language in settlement documents. A Settlement Agreement and Release typically includes a paragraph which states that the document is a General Release. Yet it is possible that a defense counsel will insist on a separate General Release that states consideration as a lump sum of cash and the
fatal
words "receipt of which is hereby acknowledged". Plaintiff lawyers in a hurry to tender to set statutory payment clock running may overlook this issue if not careful. It could be costly.
A plaintiff in
constructive receipt
or actual receipt of cash cannot structure.
Furthermore, if there is documentation of two releases in the file, which one will stand up in the face of an audit by the IRS or state or local taxing authorities?
An unwind of a qualified assignment due to a tax compliance issue could be costly to defendants and their insurers. Work with an experienced structured settlement expert on every case involving a structured settlement.
4structures.com, LLC
The Structured Settlements and Settlement Planning Company
43 Harbor Drive, #309 Stamford, CT 06902 USA
888-325-8640
646-849-1588
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Structured Settlement Experts and Settlement Planning Consultants for settlements from claims or lawsuits arising out of Aviation accidents, Medical Malpractice, settlements involving Serious Personal Injury, Wrongful Death, Wrongful Incarceration, Employment, Civil Rights, Discrimination of any type, Auto accidents, Motorcycle accidents, Maritime accidents, Workers' Compensation, Product Liability, Real Estate Liability, Construction Defect claims or lawsuits, Landlord/Tenant,
Property, Attorney Fee Deferrals, Funding Agreements, Structured Installment Sales, Environmental Liability and Commercial Dispute settlements.
Structured settlements and structured settlement brokerage, settlement planning, Sudden Money®, financial transitionist, funding agreements and insurance related services provided by 4structures.com LLC.
Financial Advisory Services provided through Groove Financial Advisors , LLC, and its service partners.
Fiduciary services, including the custody and administration of trusts provided via service partners.
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