That doesn’t make any sense. Exactly…that’s our point.
Peachtree Settlement Funding "seems" to be turning over a new leaf…well partly. They now refer to themselves as a settlement purchase company. In its advertising Peachtree Settlement Funding actually acknowledges consumer confusion (ironically created by them,their competitors and splog cancer cells). Bravo…to that point.
With reference to structured settlements, Peachtree Settlement Funding makes the following statement on its website (from the above linked advertisement):
Peachtree Settlement Funding advertising statement:
"It’s the same as with lottery prizes. Many state lotteries now offer a lump sum option instead of the traditional 20 – 30 year annuity payout; however, when you elect to receive a lump sum you typically receive about one half of the advertised prize amount. In fact, what the lottery commissions do is identical to a structured settlement; annuities or U.S. Treasury bonds are purchased to fund the future payments due to the winner."
FACT:
What the lottery commissions do is not identical to a structured settlement. Lotteries do not fall within the purview of Internal Revenue Code Sections 104(a)(1), 104(a)(2), 5891 or 130. The annuities purchased are different and the tax treatment is different. Lottery annuities do not have the same level of customization and flexibility that structured settlements do.
Moreover Peachtree Settlement Fundng should know you cannot win a structured settlement. It is achieved by a compromise, a "meeting of the minds" following negotiations. You don’t need to lose a limb or a loved one to win the lottery. As they say for the lottery "all you need is a dollar and a dream" relying on the "hey…you never know" impulse. The way the Peachtree advertising paragraph is written could be interpreted to mean that a defendant puts one half of the agreed to settlement into an annuity. The reality is that this is not the case and that cost disclosures are mandatory in New York, Florida, Massachusetts and Minnesota and many quality structured settlement brokers use a form of Structured Settlement Affidavit.
©John D. Darer 2006. All rights reserved
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