Imagine a financial solution created specifically for injured parties that combines the tax advantages of a structured settlement with market-related returns.
Getting injured is traumatic and destabilizing. Structured settlements help injured people plan for the future and regain control of their lives. We designed Settlements Plus to provide for even more flexibility and investment opportunity within a structured settlement.
A structured settlement is a voluntary agreement reached between a plaintiff 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 for claimants to budget, safeguard, and maximize their settlement funds.
Tax free* payments are available for physical injury settlements, and for those settlements involving non-physical injury, tax deferred payments.
Unlike when claimants receive cash and invest, payments (which include the gains on the underlying investment portfolio) are all tax-free, thereby allowing the opportunity for greater rates of return on future payments.
In addition to tax-free or tax-deferred income on structured settlements, the claimant’s funds may be allocated to market-related investment portfolios.
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.
Settlements Plus can help achieve asset-class diversification to address income, retirement planning and other financial needs. Settlements Plus can also be used in conjunction with a structured settlement annuity to provide guaranteed fixed income plus market-based income.
Periodic payments are designed to deliver the flexibility and customization needed to meet a claimant’s specific financial needs.
Claimants can select a passive or active investment management approach using a financial institution or their personal financial advisor. This allows for the investment to work in conjunction with their specific needs and 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 provides claimants with a financial solution that enables them to plan as much as possible and to maximize their settlement income.