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.
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.
Patriot Settlement Resources appears to solicit investors in structured settlement receivables while misrepresenting them as annuities
Consider that:
Florida Statute §617.4554 (b) expressly states that “Annuity” means an insurance product under state law which is individually solicited, whether classified as an individual or group annuity.
According to the website of Florida’s Chief Financial Officer Jimmy Patronis “Annuities must be sold by a licensed insurance agent”
Florida has adopted the NAIC Life & Health Guaranty Association Model Act containing an express exclusion that is not mentioned in Patriot Settlements solicitation of investors. See Florida Statute§631.713(q) excludes “Structured settlement annuity benefits to which a payee, or a beneficiary if the payee is deceased, has transferred his or her rights in a structured settlement factoring transaction, as that term is defined in 26 U.S.C. s. 5891 (c)(3)(A).
There are only so many Shades of Bullshit folks
Here is red, white and blue version (sourced for commentary from the Boca Ration/Stuart Florida based Patriot Settlement Resources website January 27, 2022:
“We are ready to discuss the exciting investment opportunity. We will explain the process and give you the information you need.
Disclaimer: No securities regulatory authority has expressed an opinion about these annuities. it is an offence to claim otherwise. IRC 5891 Annuitiesare only offered for sale in the United States and are exempt from registration with U.S. Securities and Exchange Commission. Each prospective investor should be aware of their risk tolerance and consult his or her own counsel, accountant, and business advisor as to the legal, tax and related consequences of a purchase by him or her of any asset. No tax advice has been nor is beign (sic) rendered by PSR, LLC, any of its officers, directors, managing agents, employees, affiliates, or subsidiaries. IRS rules of practice require us to inform you that any description or discussion of taxation contained in this correspondence related to a federal tax issue is not intended or written by PSR, LLC to be used, and cannot be used by any taxpayer for the purpose of avoiding any tax penalties imposed by the Internal revenue service, or for promoting, marketing or recommending any tax related matters addressed herein”.
There is no such thing as an “IRC 5891 annuity” or annuities. The term “annuity” does not appear anywhere in the text of IRC 5891.
I.R.C. § 5891(c) Definitions —
For purposes of this section—
I.R.C. § 5891(c)(1) Structured Settlement —
The term “structured settlement” means an arrangement—
I.R.C. § 5891(c)(1)(A) —
which is established by—
I.R.C. § 5891(c)(1)(A)(i) —
suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or
I.R.C. § 5891(c)(1)(A)(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
I.R.C. § 5891(c)(1)(B) —
under which the periodic payments are—
I.R.C. § 5891(c)(1)(B)(i) —
of the character described in subparagraphs (A) and (B) of section 130(c)(2), and
I.R.C. § 5891(c)(1)(B)(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.
I.R.C. § 5891(c)(2) Structured Settlement Payment Rights —
The term “structured settlement payment rights” means rights to receive payments under a structured settlement.
The term “structured settlement factoring transaction” means a transfer of structured settlement payment rights (including portions of structured settlement payments) made for consideration by means of sale, assignment, pledge, or other form of encumbrance or alienation for consideration.
I.R.C. § 5891(c)(3)(B) Exception —
Such term shall not include—
I.R.C. § 5891(c)(3)(B)(i) —
the creation or perfection of a security interest in structured settlement payment rights under a blanket security agreement entered into with an insured depository institution in the absence of any action to redirect the structured settlement payments to such institution (or agent or successor thereof) or otherwise to enforce such blanket security interest as against the structured settlement payment rights, or
I.R.C. § 5891(c)(3)(B)(ii) —
a subsequent transfer of structured settlement payment rights acquired in a structured settlement factoring transaction.
I.R.C. § 5891(c)(4) Factoring Discount —
The term “factoring discount” means an amount equal to the excess of—
I.R.C. § 5891(c)(4)(A) —
the aggregate undiscounted amount of structured settlement payments being acquired in the structured settlement factoring transaction, over
I.R.C. § 5891(c)(4)(B) —
the total amount actually paid by the acquirer to the person from whom such structured settlement payments are acquired.
The term “responsible administrative authority” means the administrative authority which had jurisdiction over the underlying action or proceeding which was resolved by means of the structured settlement.
I.R.C. § 5891(c)(6) State —
The term “State” includes the Commonwealth of Puerto Rico and any possession of the United States.
In closing, it seems that Patriot Settlement Resources website still features ” “Canker Sore Chick” a smiling photo stock model with canker sores on her tongue that has been festering for 6 years.They can treat that you know. Click the above Canker Sore Chick link to see my August 12, 2016 post.
