by Structured Settlement Watchdog
The South Town Tattoo and Body Piercing Blog of Fort Smith AR deserved “some ink”just not the type they were hoping for
Structured Settlement Watchdog “needles” South Town Tattoo and Body Piercing blog for some really inaccurate stuff that misinforms the public
The South Town Tattoo and Body Piercing Blog of Fort Smith, AR recently took a stab at explaining structured settlements. Unfortunately, several of their statements were less “body art” and more “botched job.” In the spirit of public service — and clean lines — the Watchdog offers the following corrections.
Tat’s Not True #1
“Structured settlements have not normally been available”
Comment: Apparently about 600 professionals have been plying their trade in something “abnormal” for over 30 years — resulting in a nominal estimate of $125 billion structured. If that’s “not normally available,” then the entire industry must have been hallucinating like a sailor who got a discount tattoo at 3 a.m.
Tat’s Not True Rule #2
“The Periodic Payment Settlement Act of 1982 was enacted to make huge awards additional agreeable to all get‑togethers…”
Comment: Party on, Razorbacks! Oh wait — the Periodic Payment Settlement Act of 1982 was enacted during the Reagan Administration, not Bill Clinton’s. Wrong decade, wrong President, wrong everything. This isn’t a small slip; it’s the kind of timeline blowout that would make any tattoo artist reach for the cover‑up ink.
Tat’s Not True Rule #3
“This is what is identified as ‘tax deferral.’ Only when you come to a decision to withdraw your cash are your gains matter to profits tax.”
Comments: This one’s a full‑on blowout. Structured settlement payments aren’t “tax deferral” when they’re paying out personal physical injury, physical sickness, wrongful death, or workers’ compensation damages. Those payments are income tax‑free, period — no “withdraw your cash” moment, no taxable gains lurking under the stencil.
Congress even added another category in the PATH Act of 2015, carving out an exclusion under IRC §139F for wrongfully incarcerated individuals. If the money relates to the covered offense, it’s not included in income. No deferral. No taxable buildup. Just excluded.
The tax deferral concept applies to non‑qualified structured settlements — the ones built on taxable damages. In those cases, future periodic payments can spread out taxable income over time. But mixing that up with tax‑free §104(a)(2) payments is like confusing a clean line with a prison tattoo done in a broom closet.
Tat’s Not True Rule #4
“When you decide to withdraw your resources, the coverage corporation will give you the selection to receive a guaranteed revenue for as very long as you live.”
Comment: If you want “guaranteed revenue for as long as you live,” then yes — a structured settlement funded with an annuity is a viable option. That’s literally what life‑contingent annuities do.
But the way the tattoo blog phrased it makes it sound like you’re pulling money out of a savings account and the insurer suddenly offers you a lifetime income plan like a menu item. Structured settlements don’t work that way. You don’t “withdraw resources.” You receive scheduled periodic payments — and if the settlement design includes a life‑contingent payout, then the payments continue for your lifetime.
It’s not a withdrawal. It’s not a selection at cash‑out time. It’s a pre‑structured annuity payout pattern baked into the deal from day one.
In tattoo terms: You don’t walk in for a touch‑up and suddenly get offered a full back piece. You choose the design before the needle hits the skin.
Outro
Even in the tattoo world, a steady hand matters. Facts, like ink, have a way of becoming permanent once they’re out in public. So when a blog starts free‑styling structured‑settlement “truths” like a walk‑in special, the Watchdog steps in to clean up the lines. Consider this a friendly touch‑up — no charge, no tipping required, and far less painful than laser removal.
Tweety balloon Image source: © Nikita Rogul | Dreamstime.com
Header image: AI generated through creative through of this blog’s author.
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