Treasury-Funded Structured Settlements
U.S. Treasury securities and debt obligations of the U.S. Government are backed by the full faith and credit of the United States, and are perceived by domestic and international investors to be one of the safest bond investments in the world. For those claimants seeking high-quality and predictable income and principal from their settlement, the Treasury-Funded Structured Settlement (TFSS) is the right choice.
For example, when combining a TFSS with a structured settlement annuity, the options become even greater. A split-funded settlement can provide diversification and security while allowing the flexibility of lifetime payments.
The TFSS is provided through Midwest Trust, which has nearly $9 billion in assets under administration and is committed to providing fiduciary services designed to meet your needs, from living trusts to estate settlement.
TFSS has compiled a guidebook covering the statutes, rules and, in some jurisdictions, local customs that govern the settlement of minor's claims, and in doing so, address the usage of one of the most popular and powerful tools available for settling minor's claims: Structured Settlements. TFSS provides the unparalleled security afforded by US Government obligations, deemed to be the safest financial instruments available and rated AAA by Fitch, Aaa by Moody's and AA+ by S&P.
Congress recognized the importance of structured settlements for minors in the Fiscal Year 2000 Budget of the US Government, where Senator Max Baucus stated that "many successful litigants, particularly minors, have dissipated their awards in a few years and are then without means of support; whereas periodic payment settlements, on the other hand, provide plaintiffs with a steady income over a long period of time and insulate them from pressures to squander their awards."
The TFSS-International offers significant tax benefits, enhanced rates of return, and flexibility of timing of the periodic payments, among other benefits for non-qualified settlements.
- Some Options for Using TFSS-I
- Attorney Fees
- Construction Defect
- Breach of Contract
- Workers' Comp
- Installment Sales
- Employment Litigation
- Property Disputes
- Non-Physical Injuries
- Punitive Damages
TFSS-I benefits include:
- Maximize Settlements and Minimize Taxes. Nonqualified structured settlements can defer the receipt of income into future years, potentially minimizing exposure to AMT and avoiding higher taxes in the current tax year. Tax issues can be very important in designing a financial resolution that satisfies all parties involved.
- Transfer Risk and Reduce Costs. A Nonqualified structured settlement can eliminate the risk of changes in investments or interest rates.
- Increased Flexibility. The payment stream to the claimant can be designed to meet a variety of needs, including lump sums, immediate payments, deferrals, or some other combination.
- Unparalleled Experience. TFSS-International is supported by the industry's leading experts in nonqualified structured settlements, including the author of PLR 200836019, which first established the use of structured settlements for taxable settlements. We can provide high level assistance for a broad range of non-qualified cases and can be a resource for complex issues.