Structured Settlements 4Real®Blog 2026
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.
Recent Posts
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- 🔹Structured Settlements and Bankruptcy of the Payee: What Courts Actually Look At
- Structured Settlement Collection Agency in Henderson, Nevada Is Still Not a Structured Settlement — Now Nevada Law Makes That Clear
- Crypto Still Isn’t Suitable for Injury Victims — A Reminder From This Week’s Headlines
- Survivor Justice Tax Prevention Act Introduced
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Category: Structured Settlement Tax Issues
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FAST (Fast Annuity Settlement Transfers) of Boca Raton is the Latest Mallardy in Structured Settlement Canard of the Day “No, your structured settlements don’t get taxed by the government!” they say. So why is what these FAST folks are saying simply quackers?
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The IRS has consistently held that compensatory damages, including lost wages, received on account of a personal physical injury are excludable from gross income with the exception of punitive damages. Rev. Rul. 85-97 and also see Commissioner v. Schleier, 515 U.S. 323, 329-30 (1995). says IRS.
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The structured settlement factoring industry and its surrogates generate alot of content about areas of structured settlements that are not a part of their business. Unsurprisingly content generated by the structured settlement factoring industry may be inaccurate and cannot be relied upon by consumers.
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While some of the incorrect statements by some settlement planners may seem plausible, it is the nature of damages that the structured settlement payments represent that is a critical factor, not the structured settlement annuity contract itself. John Darer revews the details here,
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Courts do not establish structured settlements, and such arrangements do not require court approval to avoid taxes. Tax exemptions under the IRC apply to various damages related to personal injuries, including workmen’s compensation and wrongful incarceration. Approval is necessary in cases involving minors, incompetents, or wrongful death settlements.
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If Harvey Weinstein, accused by numerous women of sexual harassment (and in a few cases, assault, ends up negotiating settlements with his accusers, many settlements will be taxable. After paying legal fees and federal and state income taxes, it could leave a third or less to the victim depending on their attorney’s contingency fee agreement.
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Can retired New York State lawyers who have structured attorney fees take an exclusion, on that income, of up to $20,000 intended for retirees on their structured attorney fee income?
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The Estate of the Minor is the default beneficiary designation for structured settlements payable to minors. Generally minors cannot make changes of beneficiary until the age of majority. This could be a problem where the child’s parent already has (or parents have) a sizable estate
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Sellers need to be aware that a transactions that do not comply with federal or state statutes, may put the tax treatment on the table for discussion. The Federal legislation, effective in 2002, that established IRC 5891, is intended to protect payees who sell structured settlement payments.