Turn Your Goals into a Plan
A market-based structured settlement through United Settlement Advantage® or United Fee Advantage® will help you turn your financial goals into a financial plan. Note that you must make the decision to utilize a structured settlement before the settlement is finalized.
Here’s how it works:
First, the claimant signs a settlement agreement and release. The defendant/insurer then pays the amount to be structured to a third-party assignment company. The assignment company directs the master custodian to invest the assets per the terms of the periodic payment agreement. The assignment company then directs the master custodian to make the agreed-upon payments to the claimant.
The Market-Based Structured Settlement Process
Why does a third-party assignment company need to be involved?
To receive favorable tax treatment, neither the claimant nor their attorney/law firm can have “constructive receipt” of any settlement funds. To be released from liability, however, the defendant needs to distribute the settlement funds. The defendant assigns liability for the structured settlement payments to a third-party assignment company, which is then responsible for funding the structured settlement.
What assignment company does United Settlement Solutions® use?
United Settlement Solutions® utilizes United Assignments, SCC, a third-party assignment company based in Barbados. Barbados is the location of choice for market-based structured settlements due to its unique tax treaty with the United States that prevents double taxation on financial vehicles like a structured settlement. As soon as the money is wired from the defendant to the assignment company, the assignment company immediately wires the money to a United States-domiciled financial institution. The funds stay in the United States for the entirety of the contract.
