…situations where there is no
physical injury (so monetary
awards are taxable) but there
will be a stream of financial
payments over time.Non-Qualified, Taxable

Structured Settlements are also useful tools in situations where there is no physical injury (so monetary awards are taxable) but there will be a stream of financial payments over time.

In employment litigation or employment agreement claims (harassment, discrimination, downsizing, early retirement, etc.), structured settlements can be used to provide benefits for the employee and, if desired, the spouse. The payments will be taxable like salary and the employee is issued a 1099 at the end of the year or tax withholding can be done for the employee.

Punitive damages are taxable to the plaintiff and the entire tax must be paid upon receipt of the damages. We can arrange periodic payments for punitive damages, which, in some instances, may produce a favorable tax result by averaging the income. Of course, each case must be examined for the best application.

Attorney fees can be structured and, in some situations, the fee is not taxed until the actual payment is received.

There are other instances such as emotional distress, job discrimination, wrongful imprisonment, downsizing, divorce, pensions, scholarships, environmental claims and construction defect claims where awards and benefits are taxable but a structured settlement can help to soften the tax blow.

We have a host of application for these situations; call us when you have that tough case and we can help you with specific solutions.