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?

Can a structured settlement be tax free to the claimant if the claimant or his/her attorney knows the cost of the structure?

If the claimant merely knows the cost of a particular annuity plan, that fact alone does not negate the income tax free advantage of IRC Section 104(a)(2). It's only when the case is actually settled between the parties, documentation has been finalized and the settlement costs have been received by the claimant that a tax free structure is no longer available to the claimant.

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?