When you seek a personal injury settlement for your client, you want to ensure that you are doing everything in your power to maximize the value of their settlement. Although your client might be eager to receive a lump sum payment, this may not be their best option. Personal injury victims who settle their cases can benefit from opting into a structured settlement. With the help of a structured settlement broker (structured broker), you can parse out your client’s settlement through a structured annuity that regularly provides tax-free payouts, therefore, increasing the value of their settlement.
Maximize Payouts with a Structured Broker
Structured settlements are often established during the pre-trial phase but a court order can be required in some cases. With the help of a structured broker, attorneys can help ensure that funds are transferred into a structured annuity to disperse future periodic payments to the injured party. Additionally, the structured broker can help customize the settlement to best serve the client’s needs. If you want to ensure that your client benefits from a deftly planned structured settlement, contact us at Synergy Settlement Services.
The Benefits of a Structured Annuity for Personal Injury Cases
Although structured settlements can be tax free or taxable depending on the nature of the case, all cases involving personal injuries are 100 percent exempt from federal and state income taxes under 104(a) of the IRS codes. Annuities are safe and reliable because they are protected by a secure third party such as a life insurance company.
Structured settlements are advantageous because they are easier to manage in the midst of an injury, and protect the victim from losing access to medical care as a result of poor financial planning. If the plaintiff has suffered a catastrophic injury, a lump sum payment can be quickly squandered to make them more comfortable. Unfortunately, if they fail to utilize their settlement correctly, their ability to pay for the long-term treatment they require could be affected.
Taxable Structured Settlements
In addition to tax-free structured settlements dealing with personal injury cases, a structured broker can also assist with cases involving:
- Age, Gender, or Race Discrimination
- Attorney Fee Deferrals
- Breach of Contract
- Divorce Settlements
- Employment Issues
- Environmental Litigation
- Fraud Claims
- Legal Malpractice
- Property Disputes
- Sexual Harassment
- Structured Installment Sales
Structured settlements for these types of cases are taxable, but they still benefit from tax deferral on payments and competitive rates of return. Plus, payment options can be customized through a structured annuity to cover the plaintiff’s living expenses. This process can be time consuming and work intensive, Synergy Settlement Services can help.
For more information or to schedule a consultation, please submit our contact request form or call (877) 242-0022.
Disclaimer: The information contained in this article is for general educational information only. This information does not constitute legal advice, is not intended to constitute legal advice, nor should it be relied upon as legal advice for your specific factual pattern or situation.