by John Darer® CLU ChFC MSSC RSP CLTC
Settlement purchaser Peachtree Financial Solutions is chopping its Boynton Beach staff as a division is moved to Radnor, PA this summer. In July 2011, a merger with J.G. Wentworth was finalized and both companies fall under the JGWPT Holdings, LLC umbrella, headquartered in Radnor.
Jeff Ostrowski, the Palm Beach Post staff writer who reported the story on April 5, 2013, unfortunately "fumbles" on the business of Peachtree with the statement that "the company (Peachtree) offers so-called structured settlements".
In fact, Peachtree and JG Wentworth are settlement purchasers [to wit… The National Association of Settlement Purchasers (NASP)]. Structured Settlement purchasers are merchants of cash to structured settlement annuitants, in exchange of the transfer of structured settlement payment rights. A court order is required to approve such transactions.
Structured settlements, as defined in IRC 5891 (c)(1) means "an arrangement—
(A) which is established by—
(i) suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104 (a)(2), or
(ii) agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104 (a)(1), and
(B) under which the periodic payments are—
(ii) payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.
Structured settlements are funded with annuities or US treasury obligations. The former requires an insurance license .Peachtree does not " offer structured settlements".
That being said the press release actually released by the company stated the following
"The action announced today is being taken to streamline Peachtree`s
pre-settlement business and to
create management efficiencies to
better serve its customers". (EMPHASIS ADDED!)
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