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Non-Qualified Structured Settlements

Certain types of settlements do not qualify for income tax exclusion via a traditional structured settlement annuity. Fortunately, a non-qualified structured settlement annuity offers guaranteed1, tax-deferred payments for a wide range of cases.

Non-Qualified Assignment

Non-qualified structured settlements are those that do not qualify for income tax exclusion under Section 104 of the Internal Revenue Code. A non-qualified assignment offers a claimant involved in a non-physical injury case the opportunity to place all or a portion of the settlement proceeds in a structured settlement. The claimant receives the settlement funds in a series of periodic payments and is liable only for the taxes on the funds received within a given tax year. In the meantime, the pre-tax settlement funds continue to earn interest.

Why utilize a non-qualified structured settlement annuity?

  • Defer paying taxes on the lump sum settlement proceeds
  • Create a stable, long-term source of income
  • Receive guaranteed payments1

Types of Claims

Non-qualified structured settlements can be used to resolve many different types of claims, including, but not limited to:

  • Employment litigation (e.g., wrongful termination, sexual harassment, discrimination, and mental anguish)
  • Construction defects
  • Contract disputes
  • Punitive damages
  • Environmental claims
  • D&O and E&O claims

Market-Based Structured Settlements

In addition to structured settlement annuities, there are other investment options available to claimants involved in non-physical injury settlements. To learn more, visit our Market-Based Structured Settlements page.

For more information about non-qualified structured settlements, contact us today.

1Guarantees are subject to the claims-paying abilities of the issuing insurance company.

Memberships & Associations

Sage Settlement Consulting is proud to support the following memberships and associations:

  • Texas Trial Lawyers Association
  • Pennsylvania Association Justice Gold Business Partner
  • Houston Trial Lawyers Association Fellowship Business Partner
  • Mississippi Association For Justice
  • West Virginia Association For Justice
  • New York State Trial Lawyers Association
  • Partners For Justice
  • Trial Lawyers Association of Metropolitan Washington, DC
  • Philadelphia Trial Lawyers Association
  • Consumer Attorneys Affiliate Member
  • Allied Attorneys
  • Texas Association of Consumer Lawyers PAC
  • San Francisco Trial Lawyers Association
  • Maryland Association for Justice
  • Orange County Trial Lawyers Association
  • National Structured Settlements Trade Association
  • Florida Justice Association Business Friend of Eagle
  • Dallas Trial Lawyers Association
  • Consumer Attorneys of San Diego
  • California Employment Lawyers Association
  • National Association of Trial Lawyer Executives
  • Idaho Trial Lawyers Association
  • Oregon Trial Lawyers Association
  • Northeastern PA Trial Lawyers Association
  • Wyoming Trial Lawyers Association

What Our Clients Are Saying

  • "Their team of skilled consultants and corporate staff is extremely knowledgeable and a pleasure to work with. I highly recommend them to my clients and colleagues."

    - Chet W. Kern, Edelman & Edelman

    New York, NY
  • "They are competent, experienced and most importantly extremely adept at dealing with the most important person -- the client."

    - Tommy Fibich, Partner, Fibich, Leebron, Copeland & Briggs, LLP

    Houston, TX
  • "They are ardent supporters of the plaintiff bar community, and we consider them an integral part of our team."

    - Brian Panish, Panish, Shea & Boyle, LLP

    Los Angeles, CA