This press release was orginally distributed by ReleaseWire
Fort Lee, NJ -- (ReleaseWire) -- 01/20/2023 -- Settlement Funding Associates, an advocate to the settlement process with the injured party and its family members, the insurance representative, plaintiff, and defense attorneys, has been assisting attorneys for many years with establishing tax-free future payments for clients in Fort Lee, Cherry Hill, Roseland, Hackensack, Jersey City, and the surrounding areas. Let Settlement Funding Associates provide the guidance needed to ensure that clients have tax-free future payments set up properly.
When it comes to different judgment types, some are taxable and some are not. Punitive damages, which are monies awarded as punishment for the responsible party's actions, are treated as taxable income. Compensatory damages, which are monies paid to compensate for future lost wages, etc. are not taxable. It is these compensatory damages that can turn into tax-free future payments for clients.
A structured settlement is where instead of receiving a lump sum of money, for example $5 million dollars, that money is put into an annuity where periodic payments are issued to the recipient on a regular basis. The idea is that if the person was to receive the entire amount all at once, they could misuse the funds rather than use them what they were designed for.
It is important that attorneys have the right guidance when it comes to putting compensatory damages into a structured settlement. They will need to spell out the frequency that payments will be made, the amount of money to be disbursed for each payment, and to provide a full schedule of what this structured settlement will look like. All parties involved will need this to plan accordingly for a structured settlement.
Settlement Funding Associates has decades of experience in developing customized structured settlement plans for every type of claim. It makes sense to bring in an expert for these tax-free future payments so that they are set up correctly and important details are not missed. They have helped attorneys and their clients all over Fort Lee, Cherry Hill, Roseland, Hackensack, Jersey City, and the surrounding areas.
About Settlement Funding Associates
Settlement Funding Associates has over 35 years of experience in developing customized structured settlement plans for every type of claim. Visit www.settlementfundingassociates.com to learn more about their services.
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