Frequently Asked Questions
Regarding Tax Free Benefits
Can Children or even Nephews and Nieces of a Physically Injured
Person Receive Annuity Payments Income Tax Free?
The Small Business Job Protection Act of
1996 signed into law on August 20, 1996, covers claims labeled as
derivative, such as loss of consortium and loss of companionship – the
kind of claims that relatives of an injured person might have. The Act
states that damages that flow from physical injury or sickness claims
are excludable from gross income whether or not they are suffered by the
injured party. The Act also states that damages from wrongful death
claims are also excludable from the recipients gross income. We believe
that individuals who are within the limits of consanguinity to the
injured party have the right to receive annuity payments in the same way
that the injured party does.
Can
a structured settlement be tax free to the claimant if the claimant or his/her attorney
knows the cost of the structure?
Can
the claimant purchase a single premium annuity after the settlement, thereby by-passing
the defense?
The claim
involved emotional trauma, but no physical injury. Can the settlement be structured tax
free?
How are
Veteran benefits affected by a structured settlement?
Is
it better to name a specific person as the beneficiary of the guaranteed benefits of the
annuity or the estate of the annuitant?
