by John Darer® CLU ChFC MSSC RSP CLTC
It really is a disservice to consumers when companies like Annuity(dot) Org LLC don't stick to what they know. "How Courts Award Structured Settlements" is the latest piece of Structured Settlement Social Media Road Kill from Annuity.org LLC out of Orlando Florida.
- Courts do not award structured settlements. A structured settlement is a negotiated compromise or agreement.
The Annuity(dot)org explanation about qualified assignments is a joke "the defendant hands over future liability through a qualified assignment. Through tax laws, any future financial responsibility gets turned over to a third party".
Comment: The Defendant, or its insurer, transfers the obligation to make future payments by way of a qualified assignment with the consent of the plaintiff.
Here is our original structured settlement flow chart that appears on 4structures.com LLC's website
Here is the poorly plagiarized version of our chart posted on Annuity.org by someone who clearly had no idea what they terms meant. Anyone who is a REAL Certified Structured Settlement Consultant will have a chuckle over the Annuity(dot)org reference to a "Specified Trust" in Section D
Annuity(dot)org then really "screws the pooch" when it discusses the pros and cons of structured settlements
For instance
1. Annuity(dot) org "Tapping into your structured settlement without selling payments will cost you money. You will pay surrender charges and IRS penalties if you withdraw funds before age 59½".
Comment: WRONG and WRONG. Three are no withdrawals or surrenders from structured settlements. You receive payments in the amounts and at the times you agreed to. Thus there are no surrender charges or IRS penalties. Annuity(dot)org makes the blatant false implication that selling payments will not cost you money. Selling your payments to Annuity.org through its exclusive business partner, or anyone else WILL cost you money
2. Annuity(dot)org "…recipient cannot invest the lump-sum payout in other investments that carry high rates of return".
Comment: WRONG . There is nothing preventing a structured settlement recipient from investing a guaranteed or contingent lump sum payment in anything they wish.
3. Annuity(dot)org "…recipient cannot invest the lump-sum payout in other investments that carry high rates of return".
Comment: WRONG . There is nothing preventing a structured settlement recipient from investing a guaranteed or contingent lump sum payment in anything they wish.
4. Annuity(dot) org "The accrual of interest or capital gains earned on the money is exempt from federal, state and local income taxes, providing greater savings".
Comment: There is no accrual of interest or capital gains with a structured settlement annuity. There is a contract to pay future payments. To the extent that exceeds the premium what would otherwise be taxed as ordinary income is tax exempt if the payments represent payment of damages which are excluded under IRC 104(a)(1) or IRC 104(a)(2)
5. Annuity(dot)org "Unlike stocks, bonds and mutual funds, structured settlements are not dependent on fluctuations of financial markets"
Comment: Neither stock, bonds or mutual funds nor structured settlements are dependent on fluctuations of the financial markets, however, while investments in stocks, bonds and mutual funds are affected by different risk factors associated with where they are traded, structured settlement are not affected. With a structured settlement you get the "steady paycheck" that you bargained for in the "job that you can't be fired from".
Annuity(dot)org v Einstein Structured Settlements/JRR
Einstein Structured Settlements/JRR's content was just comic relief. With 3 years of fake testimonials, and fake settlement planning seminars and fake academic credentials, fake , false claims about licenses (on annuitysold (dot) com) and a typo laden, writing style with an overabundance of foreign syntax , who could ever take the company run by the poker player, "Chewbacca" and "Charto911" seriously about structured settlements?
Annuity(org) spins a higher grade of BS. And they play dirty too. They answer phones associated with spam domains that falsely imply that they are a "certified structured settlement consultant" for virtually every city, town and "rabbit hole" in the United States. Meh, what's up doc?