Other Non-Qualified Structures

The use of a non-qualified annuity can be considered in any transaction wherein the parties would benefit by receiving an annuity stream instead of up-front cash. The benefits include:

  • Deferring Tax Liability: Non-qualified annuities can defer the receipt of income into future years, thus avoiding paying potentially higher taxes in the current tax year. Tax issues can be very important in designing a financial resolution that satisfies all parties involved. The Alternative Minimum Tax can potentially be reduced or avoided.
  • Fully Guaranteed Payments: Structured Financial Associates uses secure and highly capitalized life insurance companies. Returns are fully guaranteed; once agreed upon, the future periodic payments are not subject to either interest rate risks or market fluctuations.
  • Customizing Timing of Payments: Payments from a non-qualified annuity can be customized to match the specific requirements of the parties involved in the transaction. This flexibility provides assurances necessary to conclude the transaction. Periodic payments can be guaranteed for a specified period of years or can be made throughout the lifetime of the recipient. Under some circumstances, the annuitants can be medically underwritten which can potentially increase payment amounts for the same costs.
  • Saving Time and Reducing Costs: The benefits provided through a non-qualified annuity can facilitate a more efficient negotiation process therefore minimizing overall costs.

 

Non-qualified annuities can be used In cases involving:

  • Attorney Fees
  • Structured Installment Sales
  • Employment Issues —  Wrongful Termination; Age, Gender or Race Discrimination;
  • Sexual Harassment, E&O, D&O and related claims
  • Divorce Settlement
  • Construction Defects
  • Environmental Litigation
  • Punitive Damage Awards
  • Legal Malpractice
  • Property Disputes
  • False Arrest/Imprisonment
  • Pre-& Post-August 5, 1997 Workers’ Compensation Claims
  • Disability Policy Buyouts
  • Breach of Contract
  • Lottery/Contest Winners
  • Fraud Claims
  • Psychological Damage Claims