Structured Settlements 4Real®Blog 2026

Structured settlements expert John Darer reviews the latest structured settlements and settlement planning information and news, and provides expert opinion and highly regarded commentary. that is spicy, Informative, irreverent and effective for over 20 years.

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The STRUCTURED SETTLEMENTS 4REAL® Blog is a highly regarded source for structured settlement news, information, and commentary, led by structured settlement and settlement planning subect mater expert John Darer CLU ChFC MSSC CeFT RSP CLTC. With two decades of operation, the blog and 4structures.com are recognized as comprehensive resources, offering detailed guides and specialized insights. Established in 2005, the blog caters to a broad audience, including legal professionals, injured individuals, families, and various stakeholders, providing reviews and opinions on settlement planning. John Darer, President of 4structures.com LLC, is a seasoned structured settlement expert with over 40 years of financial services experience and 31 years specializing in structured settlements. Based in Stamford, CT, he is a Certified Financial Transitionist and Registered Settlement Planner, holding insurance licenses in 45 states and the District of Columbia. John Darer is dedicated to transparency and advocacy, he emphasizes the importance of engaging trained and licensed professionals for settlement planning, offering valuable insights through his investigative journalism and professional commentary.

Tax Free Exchange Rules Must Be Followed Carefully to Achieve Benefits

by John Darer CLU ChFC CSSC

In Revenue Ruling 2007-24, the IRS declared that a taxpayer who receives a check for the surrender of an annuity from one insurance company cannot endorse the check to a second insurance company in order to "roll it over" and qualify for a tax-free exchange under IRC Section 1035.

Instead, the taxpayer is treated as having received the entire annuity proceeds as a taxable distribution upon receipt of the check. This guidance may be useful to claimants with older existing annuities (not structured settlements) with low rates who are seeking to reposition their assets to a different annuity product.

What is a 1035 Exchange?

A 1035 exchange must generally occur between products of like kind, such as life insurance for life insurance or a non-qualified annuity for another non-qualified annuity. See IRS Section 1035

 

 

 

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