Combining the Tax Advantages of a Structured Settlement with Market-Related Returns

Traumatic injures can be destabilizing, both emotionally and financially. Structured settlement programs help injured individuals plan for the future and regain control of their lives. We designed Settlements Plus™ specifically to provide injured claimants with even more flexibility and investment opportunities within a structured settlement.

What Is a Structured Settlement?

A structured settlement is a voluntary agreement reached between a claimant and a defendant. Prior to defense paying any settlement funds, the claimant elects to receive future periodic payments instead of a lump sum cash payment. Structured settlements offer significant tax benefits and allow claimants the opportunity to budget, safeguard, and maximize their settlement funds.

Income tax-free* payments are available for physical injury settlements, and for settlements involving non-physical injury, tax-deferred payments may be utilized.

Why Choose Settlements Plus™ (SP)?

• Tax-Free* Income for Physical Injury Cases: Unlike when claimants receive cash and invest outside of the settlement, SP payments are all tax-free including gains, thereby allowing the opportunity for greater rates of return on future payments.
• Tax-Deferred Income for Non-Physical Injury Cases: A claimant’s deferred funds can be placed in a vehicle other than a traditional annuity or U.S. Treasuries, allowing the claimant to realize market-related returns on the value of the future periodic payments.
• Market-Driven Growth Potential: In addition to tax-free or tax-deferred income on structured settlements, the claimant’s funds may be allocated to market-related investment portfolios.
• Asset-Class Diversification and Inflation Protection: Settlements Plus™ can help achieve asset-class diversification to address income needs, retirement planning and other financial considerations. It can also be used in conjunction with a structured settlement annuity to provide guaranteed fixed income and market-based income.
• Periodic Payments to Meet Unique Needs: Periodic payments are designed to deliver the flexibility and customization needed to meet a claimant’s individual financial needs.
• Use of a Personal Financial Advisor: Claimants can select a passive or an active investment management approach using a financial institution or their personal financial advisor. This allows for the investment to work in conjunction with their overall wealth management strategy.

*Periodic payments received on account of personal physical injury or sickness within the meaning of IRC 104(a) are excluded from gross income.

Settlements Plus Address and Name Change Authorization Form

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