The Minneapolis Star Tribune analyzed data on cases where structured settlement recipients sold future settlement payments to factoring companies. The paper looked at more than 1,200 sales from 2000 to October 2021 (when the findings were published). Here’s what it uncovered: Fewer than 20 people received cash equal to at least 80% of their settlement’s
According to a Bank of America analysis, 36 percent more people in the second quarter of 2023 made hardship withdraws from their employee benefits program than during the second quarter of 2022. Individuals are still feeling the pinch of inflation. Fortunately, injured parties with structured settlements are mostly immune from higher costs that could compel
Despite a recent pause in interest rate hikes, Federal Reserve Chairman Jerome Powell recently announced that more rate hikes are on the way this year in an attempt to slow inflation further. While this is bad news for those who are seeking a mortgage or car loan, it’s good news for personal injury claimants. Annuity
I’ve been getting calls from attorneys and injured parties asking whether settlement proceeds could jeopardize government benefits eligibility. Will Lindahl at CPT Institute put together these guidelines. If a plaintiff or family member is receiving government benefits, the plaintiff must notify the applicable state agency by registered mail of the impending settlement proceeds. If the
During the past few weeks, I’ve received calls from attorneys and clients asking whether the Medi-Cal asset cap is still at $2,000. Thankfully, the cap has increased dramatically because of wording in California’s 2022 budget. As of July l, 2022, California increased the cap to $130,000 with an additional $65,000 per family member living in
An often-underutilized structured settlement product is a non-qualified annuity. The annuity options are many and can be used in settlements involving employment litigation, contract disputes, environmental claims, punitive damages and other legal matters. Freedom Income Annuity. The Freedom Income annuity from Symetra Financial allows the annuity holder to defer non-qualified monies to future dates, such
Suze Orman, a long-time investment pundit, is sounding the alarm that many Americans are one emergency away from a financial crisis. In fact, a Federal Reserve survey noted that a $400 unexpected expense would cause financial hardship for 32 percent of American families. Coupled with today’s rising inflation, a large unexpected expense can be devastating.
A new MetLife white paper, “Structuring an Employment Settlement: A Tax Efficient Solution,” provides an overview of structured settlements and their benefits in employment-related settlements. It compares the different tax obligations of a lump sum payout versus a structured settlement in employment cases. It then provides the steps to create a structured settlement and includes
