by John Darer CLU ChFC MSSC CeFT RSP CLTC
Is it advisable to use a single qualified assignment for multiple payees within the same family when each is scheduled to receive separate structured settlements?
I submit to you that the answer is no, for the following reasons:
- Whether privacy should be sacrificed for brevity or perceived cost savings should be considered.
- Using the example of a single qualified assignment for 3 children and a mother, a single qualified assignment means that if one of the payees decides to sell all or part of the structured settlement payment rights down the road, all of the other non-selling payees’ private information is in play, including the amount and timing of future periodic payments.
- If there are multiple children an older upon reaching the age of majoroty decides to sell and provides the single qualified assignment agreement to the factoring company, then information about each of the sibling’s payments is out in the open, if not in data base of one or more factoriong companies..
Why not take steps to mitigate the unsolicited and unwanted phone calls now?
- In the event of a later marriage, remarriage, or divorce, a single qualified assignment for all payees puts the privacy of the other payees in play. What business is it of Betty Sue’s husband if her sister Annabelle is to receive a $500,000 lump sum in 2 years? Why not mitigate this potential recurring problem now?
- Boilerplate document wordings may not reflect what is actually happening. Many documents refer to a claimant in the singular, sometimes Claimant(s), but there is not a consistent distinction throughout the document. The more payees the less merry!
Leave a Reply