Monarch offers structured settlements and settlement planning services to plaintiff attorneys throughout the country. Our consultants utilize their vast industry and product knowledge to meet the needs of personal injury victims. In keeping with the values of its founders, Monarch consultants will show each case the attention and care it deserves while providing attorneys and their clients with the utmost customer service.
What is a Structured Settlement?
A structured settlement annuity (“structured settlement”) allows a claimant to receive all or a portion of a personal injury, wrongful death, or workers’ compensation settlement in a series of income tax-free periodic payments.
Benefits of Utilizing a Structured Settlement
- TAX BENEFITS: The interest earned from structured settlement annuities is tax-free. Under Section 104(a) of the Internal Revenue Code, the annuity payments are exempt from both federal and state income taxes.
- GUARANTEED RATE OF RETURN: With a locked-in rate of return, injured claimants can rest assured that market volatility will not affect their structured settlement payments. The fixed return is guaranteed for the life of the annuity, protecting it from interest rate fluctuations and undesirable market trends.
- NO OVERHEAD FEES OR EXPENSES: The lack of overhead fees combined with the preferential tax treatment allow structured settlements to remain competitive with traditional investments.
- SAFETY: Structured settlement annuities are written through the highest rated life insurance companies, providing one of the safest investments in the marketplace.
- GUARANTEED INCOME: Structured settlements can provide peace of mind to those looking for long-term financial security for their future needs. Also, claimants can enlist in the added component of having the structured settlement guaranteed for life, helping eliminate the worries of outliving one’s money.
- PROTECTION FROM CREDITORS: Florida Statute 222.14 completely exempts the cash surrender value of annuity contracts from the legal process. Structured settlements protect clients from any potential creditors or lienholders seeking compensation from their settlement.
Ideal Clients for Structured Settlements
- MINOR CHILDREN: A structured settlement can be used as a cash flow tool, with incremental tax-free interest payments made during the child’s college tenure, or for other life events, such as purchasing a home or vehicle. It can also sometimes be used in lieu of setting up a guardianship, saving on the fees and costs associated with the filings and labor that a guardianship requires.
- CATASTROPHICALLY INJURED AND INCOMPETENTS: Structured settlements are invaluable for catastrophically injured or incompetent clients. They can ensure a monthly income for the remainder of the claimant’s life and provide funding for the future care and treatments the individual will need.
- WRONGFUL DEATH: When the head of a household is no longer around to provide for the rest of the family, a structured settlement can assist by providing the deceased’s family with an income to help meet the everyday demands of monthly bills, mortgages, and other living expenses.
- DISABLED CLIENTS: For clients who can no longer work and therefore are no longer bringing in income, a structured settlement annuity can act as supplemental income to their monthly disability.
Examples of Structure Options Available
Some of the more popular structured settlement payment schedules include, but are not limited to:
- Lump Sum Payments for Important Life Events such as college attendance, purchasing a home, getting married
- Monthly Payments for Life to Act as Monthly Income
- Deferred Monthly Payments to Supplement Retirement
- Deferred Annual Payments for Childrens’ College Funds