by John Darer CLU ChFC MSSC CeFT RSP CLTC
Your “dating habits” can get you into trouble when establishing structured attorney fee programs and attorney fee deferred compensation programs and structured settlements for taxable damages
Settlement agreements are contracts that obligate payment be made on a certain date. In most cases that obligation is shifted to a qualified assignment company, which purchases an annuity to fund that periodicpayment obligation to payment on a certain date. But what if it comes in early?
Skip the year-end chaos of payments hitting your account just in time to ruin your holiday cheer—aim for a post-January 1 arrival instead!
Consider using a starting payment date at least 10 business days into January, when settlement documents are drafted.
You may also want to consider inserting language in the settlement documents that addresss when the payment date is not a business day (i.e. if the payment date is on a holiday or a weekend) that payments will be made on the next business day.
Keep in mind that when January 1st (New Year’s Day) falls on a Monday, like it did in 2024, the days leading up to it are part of a weekend. The previous week is also a short one, with Christmas on a Monday, and many people taking time off. Additionally, the Friday before January 1st is often a half day for many, and insurers or payment providers might release payments early to meet their contractual obligations.
Pay Extra Attention to Payment Dates on These Types of Settlements
Structured Attorney Fees and Attorney Fee Deferral Experts | 4structures.com LLC
Last updated November 2, 2025