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![A Structured Settlement Is…
• A core tool in the settlement tool chest
• Like a ‘job’ that you can never be fired
from. [ without taxes on most damages in
PI/WD cases, also WC]
• A way to reduce cost of an MSA by 20-30%
• A way to defer taxes for taxable damages
or attorney fees payable to individual
lawyers or law firms
And that’s for starters!
©4structures.com®LLC 2017](https://image.slidesharecdn.com/structuredsettlements2017-170121101834/85/Why-People-Do-Structured-Settlements-2018-3-320.jpg)
Uploaded byJohn Darer CLU ChFC MSSC CeFT RSP CLTC
Why People Do Structured Settlements 2018
Structured settlements remain a crucial tool for managing financial outcomes in personal injury and workers' compensation cases, offering tax benefits and risk management. They have a long history and are supported by regulated insurance companies, demonstrating their stability and relevance over time. Alongside structured settlements, various financial products and strategies allow individuals to address longevity risk and manage their investments effectively.
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Why People Do Structured Settlements 2018
- 1. STRUCTURED SETTLEMENTS IN2017 ARE STRUCTURED SETTLEMENTS STILL RELEVANT? By John Darer® CLU ChFC MSSC RSP CLTC Sudden Money® Advisor 4structures.com® LLC
- 2. A Few ThingsStructures Have Outlived
- 3. A Structured SettlementIs… • A core tool in the settlement tool chest • Like a ‘job’ that you can never be fired from. [ without taxes on most damages in PI/WD cases, also WC] • A way to reduce cost of an MSA by 20-30% • A way to defer taxes for taxable damages or attorney fees payable to individual lawyers or law firms And that’s for starters! ©4structures.com®LLC 2017
- 5. Where Structured SettlementsFit In the Settlement Tool Chest STRUUCTURED SETTLEMENTS WEALTH MANAGEMENT TRUST ADVISORY • Structured Settlements • Settlement Planning • Sudden Money ®Transition Planning • New York CPLR 50B Structured Judgment Expertise Analysis/ Projections • Mediation Support • Structured Legal Fees • Attorney Fee Deferred Comp • Structured MSA • Settlement Trusts • Funding Agreements for B2B disputes, environmental, commercial litigation • Structured Installment Sales • Life Insurance • Life Insurance Conversions for LTC • Life/Viatical Settlements • Law Firm Buy /Sell Ins, • Disability Buyout Ins. • Long Term Care Ins. • LTC Annuity • LTC Life Insurance • Medigap Insurance • Medicaid Compliant Annuity • Longevity Insurance • Indexed Annuities , Indexed Linked Structured Settlement Annuity • Deferred Income Annuities, SPIAs TRANSITION PLANNING
- 6. Why People Allocateto Structured Settlements • Address Longevity Risk • Risk Tolerance • Backed By Regulated Insurance Product • Tax Benefits • Interest Rates ©4structures.com®, LLC 2017
- 7. Structures Address LongevityRisk HOW LONG? HOW FAR? ©4structures.com LLC 2017
- 8. Stable Income ForLife, or As Long as You Like ©4structures.com®, LLC 2017
- 9. Longevity Insurance Backedby Life Insurance Companies With Lots of Longevity • New York Life Insurance Company (C19th) • MetLife (C19th) • Pacific Life Insurance Company (C19th) • Prudential Ins. Company of America (C19th) • US Life Ins Co. in City of NY (C19th) • Liberty Life Assurance of Boston (105 yrs) • American General Life Ins. Co. (102 yrs) • United of Omaha (80+ years) • Berkshire Hathaway/Natl Indemnity (75+ years) ©4structures.com®LLC 2017
- 10. Tolerance For Upsand Downs FUN NOT SO FUN ©4structures.com LLC 2017
- 11. Fine Margins inRisk Tolerance Faced with these margins, many people find structured settlements attractive 4structures.com® LLC 2017
- 12. Are Annuities aPassing Fad? Annuities actually go back 2,000 years, underscoring the immutable fact that annuities have outlived centuries of passing fads
- 13. Condensed Hx ofAnnuities • Origins in Roman Empire (27BC-476AD), from Latin “ Annua” • Middle Ages- Tontine policies, the ultimate ‘Dead Pool’. Popular with wealthy investors. • 1759 introduced in America as retirement pool for church pastors • Ben Franklin left annuity to City of Boston in his will that paid out until the 1990s!
- 14. Condensed Hx ofAnnuities • 1929 Stock Market Crash Safe Havens Sought • 1952 First Variable Annuities • 1975 Structured Settlement Early days in USA • 1982 Periodic Payment Settlement Act • 1985 New York CPLR Article 50A • 1986 New York CPLR Article 50B • 1995 Lump Sum Commutation Rider at Death PLR • 1997 Non qualified assignment facility established by Liberty Mutual • 1999 Variable Structured Settlement PLR • 1995 Structured Medicare Set Aside • 2008 Non Qualified Assignment PLR (Taxable Damages) • 2014 Index Linked Structured Settlement
- 15. Interest Rates • Observedto be a secondary consideration for most • Interest rates have been improving • Structured settlements are part of an allocation in PI/WD cases • Huge tax leverage on taxable damage cases
- 16. Are Structured SettlementsStill Relevant? OF COURSE THEY ARE!