Non-Qualified Structured Settlements

Ohio, Michigan, & Nationwide

Certain kinds of settlements do not always fall within exclusions for federal income tax and structured settlement annuities. Thankfully, a wide range of case settlements can offer tax-deferred compensation. For assistance with exploring your options, reach out to an experienced firm of Ohio and Michigan non-qualified structured settlements professionals. Pre-settlement, early retention is critical for claimants.

What Is a Non-Qualified Structured Settlement?

Generally, non-qualified structured settlements do not qualify for the income tax exclusion under Section 104 of the Internal Revenue Code. A claimant involved in a non-physical injury claim may have a portion or all of their settlement funds paid through a structured settlement via a non-qualified assignment.

Unlike typical personal injury cases, a non-qualified structured settlement is a financial arrangement for settlements that are actually taxable. It allows you to defer paying federal taxes on the settlement if you receive your compensation through customized, periodic payments over time. In essence, it allows you to avoid having to pay taxes on the entire lump sum at once. However, you must agree to use a non-qualified structured settlement before settling your claim.

What Kinds of Claims Typically Use a Non-Qualified Structured Settlement Agreement?

Non-qualified structured settlements are used for many kinds of claims, including:

• Employment litigation
• Construction defects
• Punitive damages 
• Legal malpractice
• Contract disputes
• Environmental claims

Nationwide, many people resolve these types of legal claims. Even just focusing on legal malpractice claims, every year, between 1% and 2.6% of attorneys face malpractice claims. Each claim is unique, and it’s worth speaking with a qualified advisor about your specific situation. As either an attorney or a claimant, please reach out to CW Settlements to discuss our available assistance with your own non-qualified structured settlement agreement.

What Are Some Advantages of a Non-Qualified Structured Settlement?

There are several reasons to use a non-qualified structured settlement. First, you can defer paying taxes on the lump-sum settlement proceeds. Also, you could create a stable, long-term source of income, and you can set up a system of guaranteed payments.

However, while you typically are liable only for the taxes on the funds received within a given tax year, in the meantime, your pre-tax settlement funds continue to earn interest. Review your tax implications with a trusted settlement planner at CW Settlements. They can create a tailored plan consistent with your financial planning needs.

Why Hire CW Settlements for Your Ohio and Michigan Non-Qualified Structured Settlement Claim?

At CW Settlements, we can set up an initial meeting to collaborate about your financial goals. We provide individualized information to provide reliable assistance. When you hire us, we can set up your specific non-qualified structured settlement. We can also maximize your tax efficiency and ensure your long-term financial security.

We can navigate the complex legal and financial systems involved in your specific situation. Our team can tailor your payment stream based on your individual needs and prevent costly errors that could impact your future financial stability.

Hire Non-Qualified Structured Settlements Assistance at CW Settlements Today

Whether you are an attorney or a claimant, reach out to CW Settlements to go over our available services and your non-qualified structured settlement options.