A structured settlement annuity is an innovative settlement planning tool utilized in personal injury, workers comp or wrongful death claims. It protects and strategically distributes a claimants’ compensation through a series of guaranteed, tax-free payments issued over time.

Once a structure is in place it cannot be altered. With that in mind a CMC Benefits Consultant will present plan options that will show any variety or combination of the following payment options: monthly, quarterly, semi-annually, annually, guaranteed for a certain period of years, lifetime monthly payments, a series of guaranteed lump sum payments, or one single lump sum.

Unfortunately, no. The decision to utilize a structured settlement must be made prior to finalizing the settlement agreement. As your brokerage team, we will provide as many quotes as necessary to ensure you are comfortable with a payment arrangement before we finalize a plan. Our team will work with your legal representation to provide all the necessary language to be included in your settlement documents. If your case is finalized, please contact us for more options.

As your consultant and brokerage team, we appreciate the opportunity to understand your individual needs as soon as possible so we can customize the most appropriate plan for you. However, as long as you case is not closed, we are available to run quotes same-day for a quick turnaround.

One of the many benefits of engaging a structured settlement consultant is that it will not cost you a dime. Settlement consultants are paid a commission through the life companies and do not charge a fee for service to you, the claimant, or to your attorney. CMC Benefit Solutions is not captive to any particular life company and will, therefore, quote through all the appropriate channels to ensure you get the best interest rate available for your settlement funds.

No federal, state or local income taxes are due on the entire amount of each structured settlement payment under current law (Section 104 (a) of the Internal Revenue Code and IRS Revenue Ruling 79-220). This tax advantage only applies if a structure is chosen at the time of the claim settlement.

Structured settlement annuities are designed with long-term goals in mind. They are build to garner tax-free growth paid out in a predetermined payment schedule. If you decide you no longer want to receive you money as scheduled, you may sell your annuity to a factoring company, however this is ill-advised. Most factoring companies will purchase your annuity for pennies on the dollar. In many circumstances, you will stand to lose roughy 90% of your guaranteed return. In some instances, court approval is required as well.

To assess a structure’s security, you should make sure that the insurance company issuing the annuity contract is financially sound. One way to do this is to look at the ratings given by A.M. Best, Standard & Poor’s, Moody’s and Fitch for that insurance company. These rating agencies specialize in analyzing the financial strength and dependability of insurance companies and are what we utilize in our quoting process to ensure the best company is chosen for your needs. In the unlikely event that the annuity contract does not pay in full, the Assignment Company must make up any difference. Sometimes, a parent or affiliated company of the Assignment Company guarantees to make payments in full. Contact CMC Benefit Solution Consultant for further detail if needed.

Upon the premature death of a claimant, any guaranteed payment predetermined in the annuity will continue to pay out as scheduled to the claimant’s designated beneficiary.

Most life companies require a minimum of a $10K investment for a structured settlement annuity. However, CMC Benefit Solutions has options for structures lower than the standard $10K minimum. This is a great option for claimants who are still very young and have ample time for their annuity to earn interest before age 18.

Engaging a CMC Benefit Solutions settlement consultant is completely free to both you and the client. Structured settlement consultants earn commission directly from the life company chosen for the annuity. As non-captive agents, our consultants will ensure your investment is placed with the company that exhibits the best interest rates.

Yes, as your clients best advocate, it is encouraged for you to engage a broker as soon as possible if a structure becomes a viable option. Particularly in instances where minors are involved, you are NOT required to wait for Guardian Ad Litem (GAL) assignment in order to obtain quotes. In fact, in most cases, GAL’s welcome the initiative and efficiency of the plaintiff lawyer who has our prepared quotes ready to go when submitting all other documentation for review.

No, in instances where minors are involved, you are NOT required to wait for Guardian Ad Litem (GAL) assignment in order to obtain quotes. In fact, in most cases, GAL’s welcome the initiative and efficiency of the plaintiff lawyer who has our prepared quotes ready to go when submitting all other documentation for review.

Yes, CMC Benefit Solutions works in partnership with guardian ad litem’s directly, in addition to plaintiff & defense attorneys, to ensure the best possible outcome for your client’s structured settlement.

Absolutely! Adults are welcomed and encouraged to place all, or a portion of their settlement proceeds into a structured settlement annuity for maximum income protection. Once a structure is in place it cannot be altered. With that in mind a CMC Benefits Consultant will present plan options that will show any variety or combination of the following payment options: monthly, quarterly, semi-annually, annually, guaranteed for a certain period of years, lifetime monthly payments, guaranteed lump sum payments.

Using a fixed income annuity, the insurance company (or defendant) directs your fee to a third-party assignment company. Next, the assignment company uses those funds to purchase a fixed annuity. Finally, the annuity then makes payments to you, the attorney, following a pre-determined payment schedule. Annuity payments can be made via direct deposit into your bank account and are noted as 1099-MISC income, taxable ONLY during the year(s) the deposits are received. Non-fixed annuity options are available for attorneys with higher risk tolerance and are subject to a variety of minimum investment requirements.

No income limitations on contributions No age restrictions on distributions Highly compensated individuals have no restrictions based on income No reporting requirements, a 1099 is filed when the income is received Can structure fees regardless of client’s decision (stand alone attorney fee structure)

§ 1.451-2 constructive receipt of income. (26 CFR 1.451-2) (a) General rule. Income although not actually reduced to a taxpayer's possession is constructively received by him in the taxable year during which it is credited to his account, set apart for him, or otherwise made available so that he may draw upon it at any time, or so that he could have drawn upon it during the taxable year if notice of intention to withdraw had been given. However, income is not constructively received if the taxpayer's control of its receipt is subject to substantial limitations or restrictions. Thus, if a corporation credits its employees with bonus stock, but the stock is not available to such employees until some future date, the mere crediting on the books of the corporation does not constitute receipt. In the case of interest, dividends, or other earnings (whether or not credited) payable in respect of any deposit or account in a bank, building and loan association, savings and loan association, or similar institution, the following are not substantial limitations or restrictions on the taxpayer's control over the receipt of such earnings: -Childs, et al v. Commissioner of Internal Revenue 89 F.3d 856; 1996 (11th Circuit), 103 T.C. 634; 1994 U.S. Tax Ct. We hold that petitioners did not constructively receive the fees which were the subject of the structured fee agreements until payments of the amounts in accordance with those agreements.

Yes. However, as a reminder, if you chose to structure your attorneys fees (whether in a traditional annuity or market based settlement option) your decision to do so must be reflected in the settlement documents. CMC Benefit Solutions will assist in providing all of the necessary settlement language for you to include.

The beauty of this totally customizable option is your freedom to choose. Payments from the annuity can be made either directly to you, or to your law firm. Often times, attorneys will utilize a structured settlement option, payable to the law firm, to help with overhead expenses and other costs of doing business. Structuring your fee is a great way to ensure funds down the road and take the pressure off daily expenses.

Upon deciding to structure your fee, you have the option to choose when you begin receiving payment. Although start dates may vary by 30 to 60 days, depending on the carrier, most insurance companies have options for payments to start immediately. If you’d rather defer your payment to a later date, you are welcome to do so as well. With that in mind a CMC Benefits Consultant will present plan options that will show any variety or combination of the following payment options: monthly, quarterly, semi-annually, annually, guaranteed for a certain period of years, lifetime monthly payments, a series of guaranteed lump sum payments, or one single lump sum.

Yes. You can choose to place your fee into a traditional structured settlement annuity (zero risk tolerance), or a market-based structured settlement (moderate risk tolerance)