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.

Settlement Annuity Payments ARE NOT Income Tax Free “Faz Ball”!

On the "links" of Glendale, Wisconsin's  "Fazio National"

Miniature_golf_windmill_course_md_clr there's a "divot" in the fairway. It's time to put it back in place.

The Faz makes the misleading claim that "settlement annuity payments are income tax-free"

 Let's break down why the William Fazio (a/k/a "Fazio National") statement is misleading.

Structured settlement watchdog skates into town  Structured settlement watchdog won't let Fazio "skate" on this one

What is a Settlement Annuity?

A settlement annuity is a form of funding instrument issued by life insurance companies which may be used to fund future payments to resolve a claim or lawsuit. In some cases a settlement annuity may be referred to as a "qualified funding asset"

IRC 130(d) Qualified funding asset

For purposes of this section, the term “qualified funding asset” means any annuity contract issued by a company licensed to do business as an insurance company under the laws of any State, or any obligation of the United States, if—
(1) such annuity contract or obligation is used by the assignee to fund periodic payments under any qualified assignment,
(2) the periods of the payments under the annuity contract or obligation are reasonably related to the periodic payments under the qualified assignment, and the amount of any such payment under the contract or obligation does not exceed the periodic payment to which it relates,
(3) such annuity contract or obligation is designated by the taxpayer (in such manner as the Secretary shall by regulations prescribe) as being taken into account under this section with respect to such qualified assignment, and
(4) such annuity contract or obligation is purchased by the taxpayer not more than 60 days before the date of the qualified assignment and not later than 60 days after the date of such assignment.

Commentary

  • A settlement annuity maybe used as part of the resolution of cases non qualified cases such as structured attorney fees, divorce or employment settlements.Bill Fazio says as much on the very same page that it makes the misleading statement that "settlement annuity payments are income tax free"
  • The taxability of settlement annuity payments is a function of the characteristics of damages the payments represent and by using the word "settlement annuity" in both a qualified and non qualified context, William Fazio is misleading his readers.

The content for the Fazio National is claimed by Alonza Group, LLC of which William Fazio is the managing partner, according to the Manta.com profile he updated January 25, 2010.

More information on taxes and structured settlements here

 

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