Millennium Settlements Blog

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Posted by: Ericka Henderson on May 10, 2018

When a child is involved in a personal injury or wrongful death case, court approval is usually required for settlement. This prerequisite protects the child’s interest, ensures they’re compensated properly and that their money will be invested wisely. A structured settlement can speed up court approval because they‘re proven to protect minors’ interests.  Structured settlements reduce the risk of money being misused and provide the child with payments over time for their future needs. 

Posted by: Serena Fitchard on Apr 16, 2018

Market-based structured settlement programs have re-emerged recently and are growing in popularity.  From MetLife's variable annuity offering in the 1990's to the recent introduction of an investment portfolio approach, market interest drives the creation of alternative options for settlement dollars.  What exactly is a market-based structured settlement?  It is an agreement of the settling parties for periodic payments which are funded by an investment portfolio rather than an annuity contract. This results in future payments determined by investment performance, rather than a schedule of fixed benefits. Similar to an annuity-funded structured settlement, the payment schedule (start date, duration, frequency, etc.) is determined at the time of settlement and cannot be changed. The amount of each payment is fixed as a proportion of portfolio value, as opposed to being a fixed dollar sum.

Posted by: Eric Vaughn on Mar 13, 2018

Almost hidden in the Bipartisan Budget Act of 2018 that was recently passed and signed by the President, was one critical change for anyone handling a case with a Medicaid lien.  Toward the end of the 250-pages is a subsection (Section 53102) fully repealing Medicaid's expanded third-party recovery rights. Now, Medicaid can only seek reimbursement from a portion of the settlement allocated to medical costs - Medicaid cannot recover monies from lost wages, pain and suffering or any other damages awarded to the injured party.

Posted by: Ericka Henderson on Feb 12, 2018

We are all familiar with traditional structured settlements that are used on IRC 140(a)(1) and 104(a)(2), IRC Section 130 cases that provide injury victims future, guaranteed tax-free benefits.  You also are probably familiar with the concept of structured attorney fees that provide tax-deferred payments with market-related returns when establishing future periodic payments at the time of settlement. 

Posted by: John McCulloch on Jan 16, 2018

The Tax Cut and Jobs Act of 2017 (the "Act") was signed into law by President Trump on December 22, 2017 and contains some of the most sweeping tax changes to the Internal Revenue Code seen in decades. While these changes have no direct impact on structured settlements or the taxation of most types of claims, there are a number of changes that have a significant impact on defendants and plaintiffs.  

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