by Structured Settlement Watchdog®
Settlement1st.com is a new website purports to give you "all you need to know about structured settlements" but falls flat on its face. At the time of posting, most of the information presented on the Settlement1st.com website is so poorly written and so poorly researched that it offers little value to structured settlement consumers, in my opinion.
Before I get to the funny stuff I should point out the irony of a company that registered its website using privacy protection from Utah based Blue Host to ostensibly protect themselves from people who might rely on the poorly researched material, yet displays a privacy policy (which displays Canberra Australia) to encourage people to give up their personal information. I was able to determine that a chap named Ian is involved with the site, using some forensic tools. There are no contextual links on the website (yet), but one of the posts plugs Einstein Structured Settlements, another purveyor of information that is often poorly researched, in my opinion, with the support for my opinion clearly documented here for almost 2 years.
Now for the reality check. When Settlement1st.com attempts to list the cons of structured settlements:
A. Settlement1st says "You can lose the tax benefit if you have control over the annuity and proceeds"
Here's the Reality When a structured settlement is established it is the qualified assignment company, not the plantiff or payee who purchases an downs the qualified funding asset, which is generally an annuity, but may also be United States Treasury obligations, as more fully set forth in IRC 130(d).
B. Settlement1st says "If there is a sudden change in the economy, for example recession or inflation might hamper the settlement amount regardless of the fact that annuities have built in clauses for protection against any economy changes"
Here's the Reality Annuities do not have "built in clauses" for protection against "any economy changes". The settlement amount is the settlement amount. If you settle a case for $1million that is the settlement amount.If you blow themoney in 5 years, the settlement amount has not change from $1 million,you ahve simply blown the money.
C. Settlement1st says "Brokers who might not be protected from insolvency may have the hand in the annuity"
Here's the Reality You should not enter into a structured settlement, or sell your structured settlement payment rights, without advice from a licensed professional who possesses valid relevant professional designations or credentials. Generally professional liability insurance for insurance agents has a specific exclusion for insolvency. Nevertheless coverage might be extended on some other theory of damages.
D. Settlement1st says "The annuity cost is not disclosed and may be less of cost lump sum amount"
Here's the Reality The annuity cost IS disclosed as a matter of customary business practice. In some states such as New York, Minnesota and Massachusetts, it is mandated by state law. Furthermore, since more often than not, a plaintiff has his or her own structured settlement planner or advisor, the plaintiff knows the annuity cost.
Settlement1st says "The majority of the annuities are made by insurance agencies. The annuity is just as secure as the firm that issued it. This is the reason it is important to work with the top of the line disaster protection organizations"
Here's the Reality
Annuities are contracts issued by life insurance companies, and placed by licensed agents or brokers who are appointed with the annuity issuing life insurance company. Licensing is controlled by the individual states. The sale of variable annuities, which are used in financial planning, but not currently with structured settlements, come under both state and federal regulations.
Then comes the "bell ringer" folks!
Settlements1st.com then describes the concept of receiving a sum of money in exchange for structured settlement payment rights as "terrible cash now". See for yourself by clicking on the link below
Download Transfer of structured settlement payment rights – Settlement 1st terrible sum cash now
There's plenty more to know about structured settlements. Here's what you need to know about structured settlements
Postscript: The subject website Setttlement1st.com has been removed from the Internet