Save Money by Structuring Your Taxable Settlements
Traditional structured settlements are endorsed by many of the nation’s top attorneys, disability advocacy groups, claims professionals and distinguished Members of Congress.
For good reason.
With future cash flows that are 100% income tax-free and tailored to one’s unique anticipated needs, structured settlements have been helping secure futures for over 30 years.
Surprisingly, though, many of these same advocates who encourage the use of structured settlements for personal, physical injury claims are completely unaware of the money saving potential that awaits them when a similar resolution tool is implemented on personal, non-physical injury settlements.
Why Cash Settlements Can Be So Costly
When taxable damage disputes settle for cash, 100% of the money is received in a single year.
Not surprisingly, taxes owed on this cash recovery are also due in that same year.
And because even a moderate settlement can push the taxpayer into a higher-than-normal marginal tax bracket, a significant percentage of their recovery is often paid out in taxes unnecessarily.
Marginal tax rates of 50% or higher are not unprecedented once federal, state, local, supplemental and Alternative Minimum Tax (AMT) are applied to one’s cash settlement.
It doesn’t have to be this way.
The Solution: Non-Physical Injury Structured Settlements
When you choose, in advance of finalizing any settlement negotiations, to arrange for your settlement proceeds to be paid out over time utilizing a Non-Physical Injury Structured Settlement, you can mitigate your first year tax burden by deferring highly taxed dollars into a future year when your anticipated income and tax brackets can be better matched for maximum tax efficiency.
Among the potential benefits of structuring your taxable settlement:
- Deferred sums can earn pre-tax interest increasing the total value of your settlement.
- Keep more of your own recovery by lowering your overall tax burden.
- Helps you plan more efficiently, on a tax-advantaged basis, for:
- Retirement
- Future major purchases
- Day-to-day living expenses
- College for children or grandchildren
.
In addition to the instructional video at the top of this page, we’ve also created a more comprehensive educational webinar designed to help you better understand the many benefits of this valuable settlement option:
Structuring Your Taxable Damages Webinar
When to Choose a Non-Physical Injury Structured Settlement
With only a few notable exceptions, you can probably benefit from structuring a portion of almost every conceivable type of taxable damages settlement. Among the most common examples:
Wrongful Termination * Discrimination * Civil Rights * Punitive Damages * Bad Faith * Harassment * Breach of Contract * Intellectual Property Infringement * Retaliation * Defamation * Business Interference * Emotional Distress * Many, Many Others
Contact Dan Finn Today
If you or a client of yours is in the midst of negotiating a non-physical personal injury claim, don’t wait until everything is settled. Now is the time to contact Finn Financial Group to find out how we can help you.
Phone: 800.531.7466
E-Mail: [email protected]
CA Insurance License: 0A96173
Licensed in most states to better serve YOU. The information on this web site is not intended to provide legal or tax advice. Various tax codes and regulations can be complex and clients are encouraged to seek independent legal and tax counsel.
