Litigation

Pardon me while I adjust my "toque blanche" to address the Yahoo query "in a structured settlement agreement to avoid constructive recipe the funding annuity is usually by whom?"

The question can best be answered by having a look at the following structured settlement flow chart

To avoid constructive receipt, a key element to the transaction is that periodic payments MUST be first be part of the consideration stated in the settlement agreement, whether that be with the Defendant, its Insurer, or the trustee of a qualified settlement fund. Avoid language that uses cash as consideration and states "the receipt and sufficiency of which is hereby acknowledged".

The qualified funding asset may be purchased by the Defendant, if unassigned, or by the qualified assignment company, if asssigned. The plaintiff MAY NOT purchase the annuity themselves from their own funds.a