Discussion:Structured Settlement Company
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Discussion Forum Index --> Advanced Tax Questions --> Structured Settlement Company
Discussion Forum Index --> Tax Questions --> Structured Settlement Company
| 18 January 2008 | |
| I have a client that wishes to set up a "Structured Settlement Company". He plans to acquire client's winnings and turn the settlement into an annuity going to the client. Why type of entity can this be? Is there any type of restriction - like has to be a corporation only. Can it be an LLC? There will be 3 principles. | |
| 18 January 2008 | |
| I have a client that wishes to set up a "Structured Settlement Company". He plans to acquire client's winnings and turn the settlement into an annuity going to the client.
Uh. Is your going to be receiving or paying annuity payments? | |
| January 18, 2008 | |
| Have you got it backwards? Are you sure he's not wanting to acquire client's annuities by giving them a lump sum up front?
If he's wanting to acquire their lump sum and pay them an annunity, there must be all kinds of federal and state laws in place to protect the seller. | |
Death&Taxes (talk|edits) said: | 18 January 2008 |
| http://www.jgwentworth.com/ | |
| 18 January 2008 | |
| He has to have it backwards. You'd be setting up an insurance company or full blown securities firm to do it otherwise. | |
| 19 January 2008 | |
| No, I don't think he has it backwards. This type of arrangement is covered under Sec. 130. The defendant assigns his obligation to the structured settlement company, and the structured settlement company receives a lump sum payment from the defendant. | |
| 21 January 2008 | |
| Riley2-that is correct. So the question is, is there any restriction on the Entity form the company can take? | |
| 21 January 2008 | |
| If you want the benefit of section 130, the company has to buy an annuity; the plaintiff is going to want to be protected from other losses of the assignee, which means some kind of guaranty from the annuity issuer, which normally means the assignee has to be an affiliate of the insurance company. Does this client have a very different business plan? | |
| 22 January 2008 | |
| Boy, I wish this thing would alert me when someone gives a response. It used to do that for me. To your question, no, they are not "officially set up yet". They are waiting for me to tell them what they have to be and go from there. One attorney says they can be an LLC, the other is not sure. Past that, they are still researching wht is needed. Your protection issue to the plaintiff is already known to them, I believe. I'll bring it up again. They are still at the start point - what can they be. | |
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