Litigation

The advantages of structured settlements are many, but the one that receives heavy emphasis is the tax benefit to physical injury victims or to survivors of those who have died and recovered in a wrongful death law suit.

A few minutes ago CNBC reported that non-partisan group The Tax Foundation says that Americans Earning over $250K could pay 58% tax in 2010. Moreover, a visit to The Tax Foundation website reveals the following ominous looking headline:

"To Close Federal Deficit, Tax Rates Would have to More Than Double" (if Congress were to close the deficit in 2010

  Eliminate "skrinkage" of your recovery by using structured settlements

Use this following chart to help compare the income tax free Internal Rate of Return of a structured settlement to alternative investments with taxable returns at varying tax rates. For example please note that a 3.0 % tax free rate is like receiving 5.0% if you are in a 40% marginal tax bracket. On the otherhand those who might be impressed with the 4% they are receiving on a taxable CD from their bank would only net out 2.4% after taxes. Wowee!

Structured Settlement Taxable Equvalent Yield Chart and Net Taxable Yield Chart

Structured settlements are funded with United States Treasury obligations, such as Treasury Inflation Protection Securities,  or with special customizable annuities from major life insurance companies.

For more information about structured settlements or for a comprehensive settlement planning discussion call John D. Darer CLU ChFC CSSC RSP tolll free at 888-325-8640