Have a Non-Physical Injury COVID-19 Case? Try Tax-Advantaged Settlement Options
If you have been following along with COVID-19-related lawsuits, then you probably noticed the increasing number of non-physical injury complaints. This complaint tracker lists more than 850 complaints filed to date, including employment, civil rights, and property damage cases.
COVID-19 claimants with non-physical injury settlements may be able to take advantage of tax-deferred structured settlement payments. A non-qualified assignment allows them to receive their settlement proceeds in a series of periodic payments, with taxes due only on the funds received within a given year.
Financial Options for Non-Physical Injury COVID-19 Settlements
Structured Settlement Annuities: Claimants who choose this option can expect guaranteed1, tax-deferred payments. The amount of the payments and the timing is pre-determined on the front end, making structured settlement annuities an excellent choice for claimants seeking a sense of security.
Market-Based Structured Settlements: Clients who want to take advantage of tax deferral AND market potential may find that a market-based structured settlement better suits their needs. With a market-based investment portfolio serving as the underlying financial vehicle, claimants can defer taxes until their periodic payments are received while also having their investments managed by a reputable financial institution or even the claimant’s own financial advisor.
Tax-Advantaged Options for COVID-19 Contingency Fees
As a plaintiff attorney, you can also be proactive in mitigating your tax liability. Contingency fees can be paid out to the law firm OR the attorney via periodic payments. Just like your clients, you can utilize a structured settlement annuity or a market-based structured settlement to defer taxes until payments are received.
Contact us for COVID-19 Settlement Options
For more information about how you and your clients can make the most out of COVID-19 settlements, contact Sage Settlement Consulting today.
1Guarantees are subject to the claims-paying abilities of the issuing insurance company.