NON-PHYSICAL INJURY CLAIMS

For many years, Structured Settlements complying with Internal Revenue Code Sections 104a(2) and 130C have been used to quickly and cost-effectively resolve physical injury and workers’ compensation claims.

But not every settlement fits neatly into these categories. That’s where Assignment Corporations come in. An Assignment Corporation offers a unique settlement vehicle, that allows the resolution of disputes and claims for damages that fall outside Internal Revenue Code Sections 104a(2) and 130C.

Structured Settlements can resolve many types of non-physical injury claims including:

• Employment litigations (except for wages)
(Age discrimination, Sexual Harassment, Race Discrimination)
• Attorney Fees
• Workers compensation
• Environmental litigation
• Long-term disability buyouts
• Punitive damages
• Property disputes
• Errors & omissions claims
• Directors & officers liability
• Construction Defects and Property Disputes
• Divorce/ funding of Alimony and Child support payments
• Legal malpractice
• Breach of Contract
• Bad Faith Claims

The Parties can enter into an agreement for periodic payments and then in turn transfer
that payment obligation to an Assignment Corporation. The Assignment Corporation then buys an A+ or A++ rated annuity to match the periodic payment obligation to the claimant. This arrangement allows the parties to:

• Defer claimant’s tax liability
Defers taxable claimant income. Claimant avoids taking a huge tax hit on a lump-sum payment in a single year.

• Tax deduction
Defendant may be eligible for a current income tax deduction for the full settlement cost.

• Save time and money
An assignment may eliminate the need for and the cost of ongoing litigation and claims expenses by moving negotiations forward that would otherwise be at a standstill.

• Transfer risk and reduce cost
 An assignment can eliminate the risk of changes in market performance or interest rates. • Medical factors may be considered in the pricing of the settlement & reducing costs.

• Increase flexibility
The payment stream can be personalized to meet each claimant’s specific needs.
Periodic payments may be used to resolve a wide range of claims.

Previously, defendants were constrained by IRS limitations on the types of cases they could assign (limited to physical injury cases and workers’ compensation claims filed after August 5, 1997). Now through an Assignment Corporation, a much wider spectrum of cases can be assigned on a tax-deferred basis.