About Non-Qualified Structured Settlements

Structures are Utilized in a Wide Range of Claims
Defendants are no longer limited by the IRS Code Section 130 (limited to personal physical injury torts and worker compensation claims filed after 8/5/97) as to what settlements can be assigned.

Defendants can now take advantage of non-qualified structure settlements to resolve:

Construction defect Harassment
Directors & Officers Legal Malpractice
Discrimination Non Physical Injuries
Employment Litigation Punitive Damages
Environmental litigation Wrongful termination
Errors & Omissions

Non-qualified Assignments
In November 2001, non-qualified assignment products were introduced to the market.

Non-Qualified Assignments allow settlements from a non-personal physical injury to be placed in a structure with guaranteed returns on a tax deferred basis with the insured being able to assign the obligation over to an assignment company. As opposed to a standard structure (physical injury) where the payments are received tax-free, taxes are applied to non-qualified structures, but paid only in the year received and only on the amount received that year. Allowing the client to grow settlements tax-deferred, and avoiding paying taxes on the entire large lump sum immediately.

According to the EEOC:
Charges of discrimination were up 77% from 1992 through fiscal year 1999. These complaints include age, race, sex, religious, and disability discrimination, along with many others.

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