Structured Settlements 4Real: What's Real in the Structured Settlements, Settlement Planning, Settlement Consulting and Litigation Recovery Management Space?

House Passes Estate Tax Reform Bill and It's Good News!

2009-12-03T18:37:39-05:00

The House passed H.R. 4154, which would:

permanently freeze the estate tax exemption at $3.5 million,
the estate tax rate at 45%, and
preserve the step up in basis

The bill passed by a vote of 225-200, with no Republicans voting for it and 26 Democrats opposed. H.R. 4154 moved with statutory PAYGO however, exempted from the PAYGO requirement is an extension of 2009 rates for the estate tax (what was passed).

Statutory Pay As You Go Act of 2009 ("PAYGO")

Note: While structured settlement payments are income tax free, the present value of any structured settlement period certain or guaranteed lump sum payments remaining and due after an annuitant's death is included in the decedent's estate for purposes of calculating estate tax.

Structured Settlement Planning and Settlement Consulting

2009-12-03T18:07:35-05:00

What is Settlement Planning and Settlement Consulting?

Constructive Receipt Doctrine and Structured Settlements

2009-12-03T16:39:49-05:00

If you would like to read more on the subject...

Structured Settlements and the Big Mediation MIstake September 29, 2009

Structured Attorney Fees 101 and Constructive Receipt October 17, 2009

Structured Settlement Tips For Lawyers

Constructive Receipt in Wikipedia

Structured Settlement Internal Rate of Return

2009-12-03T15:55:57-05:00

Structured Settlements Rate of Return

More on issues related Structured Settlement Internal Rate of Return (IRR) click here

John Darer's Rant on "Cash Now Pushers"!

2009-12-03T15:39:10-05:00

structuredsettlements

Structured Settlement Factoring: Is There Truth In Advertising Re Attempted Transfers of United States Government Owned Structured Annuities

2009-12-02T21:49:10-05:00

One of my readers writes "I know you are a staunch advocate of truth in advertising in your industry. I believe... the factoring companies have learned not to attempt to factor U.S.-owned annuity payments, but I never see a disclaimer or limitation in the cash now pushers’ advertising (i.e., not available if your annuity is owned by the U.S)".

So my open question to all you factoring companies out there is how about it? Where is your disclaimer? Are you going to address the issue or must I add it to the the "soiled nappy" pile along with "cash now"?

Jamie Hanson's Financial Illiteracy Lesson on Structured Settlement Annuity

2009-12-02T16:08:38-05:00

"If you were in legal proceedings to be awarded a settlement, you may have heard certain terms thrown around, and one of them was probably structured settlement annuity

. This is just another term for a structured settlement payment, which is what you would be receiving if you were awarded a large settlement. Payments are ordered for any settlement which could financially ruin the person or company that must make amends". Jamie Hanson on, pardon me... "Article Snatch" dot com "What is a Structured Settlement Annuity"

Comments

I want to know the name of Jamie Hanson's English teacher to commend him or her on a job well done. Ignorant redundancy is good. I get it. SNORT SNORT!
A structured settlement annuity is one thing
A structured settlement payment is another thing
A structured settlement payment is derived from a structured settlement annuity much like a baby from a womb.
The size of settlement generally has little bearing on the relevance of a structured settlement.
Structured settlement payments do not require a Court order unless there are minors or incompetents involved or if the matter otherwise requires probate approval.
"Financially ruin the person"...what planet are you from?
What is a structured settlement
What is a structured settlement payment?

If I wanted such a "cheap shot" about structured settlements I'd have called these guys, not "MMM Bop"

The fictional Hanson Brothers

Factoring Companies Keep Trying But Can't Breach Uncle Sam's Structured Settlements

2009-12-02T15:01:41-05:00

What part of "NO CAN DO" with structured settlements owned by the United States do factoring companies not understand? There is already a body of appellate decisions throughout the country which demonstrates this foundation.

Spinning whatever response that can be anticipated, it still appears that a number of factoring companies, knowing of the fortifications that Uncle Sam has built up around structured annuities purchased as part of resolution of claims under the Federal Tort Claims Act, continue to waste time and appear to create more anguish for consumers.

The latest story emanates from a Consent Judgment in an interpleader action in the United States District Court for the Northern District of New York captioned Metropolitan Life Insurance Company, Plaintiffs v United States of America, et al., Stratcap Investments, Inc. Betty Martinez-Lee Frankie Lee. Defendants.

Download Stratcap Lee FTCA annuity CONSENT JUDGMENT FINAL

Significant dates

May 21, 2002 Lees enter into a settlement Agreement with the United States to resolve Federal Tort Clams Act action against the United States arising out of wrongful death of their son. The Agreement sigend by the Lees provided that $501.310.00 was paid to Metropolitan Life Insurance Company to purchase an annuity contact to fund future periodic payments to the Lees of certain amounts on certain dates. As usual under FTCA cases the annuity contract is owned by the United States and the documents provided that "the annuity company shall be the sole source from which Plaintiffs shall receive the future payments provided for in this agreement"

July 1, 2002 Betty Martinez Lee attempts to sell rights to future periodic payments under the US owned annuity, to Stratcap.

October 24, 2003 Frankie Lee makes a separate attempt to sell rights to future periodic payments under the US owned annuity, to Stratcap.

December 5, 2003, November 4, 2004 and April 21, 2008 New York Supreme Court issues orders approving the transfers of periodic payments from the Lees to Stratcap.

Stratcap serves the state court orders upon MetLife, confirms receipt by Met and THEN disbursed $101,144 to Frankie Lee and $22,000 to Betty Martinez-Lee

The US moved to void the orders on the basis that they were entered into without waiver of sovereign immunity and without subject matter jurisdiction, thus unenforceable against the United States as owner of the annuity contract.

Scott Rothstein Arrested. Criminal Complaint Contains NOTHING About Structured Settlements BOO YAH!

2009-12-01T19:56:31-05:00

Following is the Scott Rothstein charging document. As you can see there is no place in the Scott Rothstein charging document that refers to "structured settlements". And that's that! Scott Rothstein Charging Document Perhaps Kendall Coffey and the others who have unfairly mislabeled structured settlements in legal pleadings or the press can finally get it together.

John Hancock Pending Structured Annuity Underwriting Company Changes Reminder

2009-12-01T16:41:38-05:00

John Hancock has announced organizational changes in the early Fall that are pending regulatory approval. We are reposting this as a reminder to those who have or are contemplating structured settlement annuities funded with a John Hancock annuity product.

Pending regulatory approval, John Hancock Life Insurance Company (“JHLICO”, which issues structured settlement annuities (and guarantees the payment of periodic payment obligations assigned to John Hancock Assignment) is to be merged into John Hancock Life Insurance Company (U.S.A.) (“JHUSA”). As a result, John Hancock is to withdraw JHLICO’s license to do business in New York.

Under the withdrawal plan approved by the New York Insurance Department, JHUSA will then
assume direct responsibility for the payment of all claims and benefits, and for all other policy
obligations, under in force policies, certificates, or contracts. Servicing will continue without interruption.

All new insurance policies and annuity contracts in New York will be issued by John Hancock Life
Insurance Company of New York or John Hancock Life & Health Insurance Company.

A few bullet points from the John Hancock Q&A

Not final yet. It is pending regulatory approval.
The withdrawal and realignment is taking place in sequel to the Manulife Financial Corporation acquisition of John Hancock Financial Services, Inc. in 2004. Despite the integration having been successful, as is often the case in combining large organizations, John Hancock now has an excess of legal entities. As a result, this measure is part of the process of streamlining these entities to better position the company for future growth.
We expect the withdrawal and realignment will become effective at the end of the day on December 31, 2009 and your policy, certificate, or contract to be endorsed effective at that time to show John Hancock Life Insurance Company (U.S.A.) as the insurer

Useful reference pieces

New York John Hancock Questions and Answers on Merger

Download NYWithdrawalClientQA

Sample Cover Letter To Be Going Out to John Hancock clients (also presumably to structured settlement annuitants) along with the Q&A

Download Subsidiary Reorganization Cover Letter and Info Sheet

Q2 2009 Financials

John Hancock Life Insurance Company (U.S.A.) and John Hancock Life Insurance Company of New York., as provided by John Hancock

Download JHUSA and JHNY Financials Q2 09