Structured Settlement -
An agreement in settlement of a lawsuit involving specific payments made over a period of time. Property and casualty insurance companies often buy life insurance products (annuities) to pay the costs of such settlements.
This page is devoted to helping you sell your Structured Settlements at a fair price.
Law now makes all structured settlement payment sales subject to a court order. Without a court order, a tax equal to 40 percent will have to paid on the total amount of payments being sold.
This makes selling your settlement a lot safer. (For more information click below.)
Contact Us
Structured Settlement - Questions and Answers
You have the edge!
STRUCTURED SETTLEMENT PROTECTION STATUTES!!!
Mandatory for individuals to seek court approval when they sell their STRUCTURED SETTLEMENTS!
On January 22,2002, President George W. Bush signed into law a bill that protects individuals who must sell their structured settlement payments to meet unplanned financial needs.
This bill makes it mandatory for individuals to seek court approval when they sell their structured settlement payments. The bill works in conjunction with state laws directing how these transactions will be completed.
With over thirty states having already passed such laws, individuals throughout the country can now safely access their structured settlement payments when unforeseen financial needs arise.
The bill benefit and protect these individuals, but it also makes clear that annuity providers will suffer no tax consequences as a result of these transactions.
Insurance companies have long contended that when an individual sells his or her structured settlement payments, the annuity obligors could suffer tax consequences. That concern was the source of very contentious litigation between insurance companies on one side and settlement purchasers and annuitants on the other.
This bill is unambiguous, stating that annuity owners and providers do not now owe nor have they ever owed taxes as a result of these transactions. The insurance industry, the legal community and members of congress, have work together to protect individuals who need to access their structured annuity payments while acknowledging their right to do so. It is now incumbent upon those states that have not already done so to enact legislation that conforms to this federal law.
.
We believe the choice as to whether or not to sell a structured settlement payment belongs to the injured party, or their representative - not to inflexible insurance companies.
The settlement purchasing industry was created in answer to the needs of recipients whose situations had changed. Our industry has been providing choices for people who need to gain access to their money now.
The Public will now have the protection of the law when entering into any and all agreements to sell structured settlement payments.
EXCERPT FROM H.R.2884 DEALING WITH TREATMENT OF CERTAIN STRUCTURED SETTLEMENT PAYMENTS. Click here
If you do not have Adobe Reader 7.0 or you need an upgrade, Click Here for a free download.
Please Note: These PDF files work best when you save the PDF file to your hard drive, open Acrobat Reader 7.0, then open the downloaded file.
The government site with Full Text of H.R.2884 -
What is HR 2884?
Answer: HR 2884 is newly signed federal legislation that makes provisions for structured settlement recipients who want to receive one lump sum payment instead of the remaining structured payments. The new law is a part of the tax relief and assistance package for the victims of the Sept. 11 terrorist attacks.
How does the bill affect structured settlements?
Answer: Under the new legislation, court oversight and approval will be required for all personal injury victims who choose to sell their structured settlement payments to a third-party company for a lump payment. The new law eliminates any opposition or unwarranted grievances posed by insurance companies by making all requests seek court approval. HR 2884 strengthens the right for individuals to access structured settlement agreements to resolve financial difficulties and to improve their lives.
When did the bill become a law?
Answer: HR 2884 was passed by the U.S. House of Representatives and the U.S. Senate on Dec. 20, 2001. President Bush signed the bill into law on January 23, 2002
The following states have enacted transfer statutes requiring either a court order and/or certain disclosures before a structured settlement recipient can sell their annuity payments. After July 2002, every transfer of payment rights will require a court order to avoid a penalty under HR 2884.
|
Structured Settlements Protection Statutes
Statutes By State - Select Your Location
Please choose your home state from the menu below to review the specific statue allowing reassignment of Personal Injury Settlement payments.
Resources
Federal Legislation
YAHOO. |
FDR Resources,founded 1989 will work hard serve those who wish to sell their structured-settlements
Financial needs can change significantly after settlement time. Obtain immediate access to settlement funds to pay medical bills, cover education costs, settle a divorce, buy a house or for any immediate need. No closing costs for the client.
Call us today at 1-800-338-5815 or Contact us via Email today to discuss your options.
