Legacy Settlements Group

May 18, 2012 – The rationale would appear on the surface to be very simple. You own an asset, periodic annuity payments as a result of a structured settlement, with real value. The payments are guaranteed by a highly rated insurance company and issued by a highly rated life insurance company. It is not going to happen.

Structured settlements were originally created by an act of the U.S. Congress. This group felt that people who had experienced severe injury wouldlikely need a steady stream of money for a long period of time. The payments are intended to protect you. Some people cannot handle money well and needthis protection. Other people are very good with their money and would prefer to take the responsibility for a lump sum of cash on their own. Be honestwith yourself. Really ask yourself, "Can I be responsible with a structured settlement cash payout?" If the answer is "yes," then this may be the bestchoice for you.

There are varying rules and regulations when it comes to structured settlements from state to state so when choosing a structured settlement company you should find one which operates within your state, or at the very least knows all the applicable laws of your state regarding structured settlements They will be more in the know of what works best and what does not work in a structured settlement You also need to find one which will be more transparent with their policies and will work out the best plan for you.

A structured settlement is simply a future periodic payment arrangement that is made a part of a personal injury settlement. Under Section 104(a)(2) of the Internal Revenue Code, all of the future periodic payments are completely tax-free to the injury victim even though the payments include interest they earn. The structured settlement is spendthrift as it can’t be accelerated, invaded or sold. Fixed annuities are used as the funding mechanism for a structured settlement. These annuities are offered by large well capitalized life insurance companies. Annuities are used because of their flexibility and because many different payments options are available for the injury victim to meet their needs.

An assignment is said to be "qualified" if it satisfies the criteria set forth in Internal Revenue Code Section 130 1 Qualification of the assignment is important to assignment companies because without it the amount they receive to induce them to accept periodic payment obligations would be considered income for federal income tax purposes. If an assignment qualifies under Section 130, however, the amount received is excluded from the income of the assignment company. This provision of the tax code was enacted to encourage assigned cases; without it, assignment companies would owe federal income taxes but would typically have no source from which to make the payments. Financing edit