White Paper from MetLife
"Structuring an Employment Settlement:
A Tax Efficient Solution"
October 14, 2020 - Nearly three years ago, MetLife rolled out its onshore nonqualified settlement (NQA) option for taxable damage structured settlements.

Today, I'm pleased to provide this link to their recently distributed white paper which represents a deeper dive into the topic of employment litigation.

In addition to citing numerous statistics which you'll find meaningful, the authors provide insights into how the IRS approaches these types of settlements.

MetLife has emerged as the market leader in developing materials to help stakeholders in the employment litigation field better understand why it's so vitally important to consider structuring taxable damage claims.

Check out this short MetLife video which illustrates the decided tax
advantage gained when structuring taxable damages:
To be blunt, the only people who should refrain from structuring any meaningfully sized taxable settlement are those who prefer paying taxes they can lawfully avoid.

"This is like free money!
Who wouldn't settle their employment case like this?"

K.S. - Attorney representing
a wrongfully terminated client

Taxable Settlement Options Abound

Although NQAs for nonphysical injury disputes have been in use for decades, MetLife was the first to use an onshore assignment company. Most carriers offering nonphysical injury structured settlements use assignment companies located in Barbados, Ireland or other tax friendly nations for tax reasons.

But MetLife is not alone. Here's a brief summary of some of the options we're currently able to offer clients involved in nonphysical injury litigation:

  • MetLife - See above.
  • American General Life - Recently jumped into the NQA fray with the announcement of two onshore nonphysical injury structured settlement options. In addition to the more traditional NQA, they also offer a Funding Agreement (FA) which allows for more flexibility than the NQA. [Click HERE] to read about the difference between the two.
  • Berkshire Hathaway - Offers a Periodic Payment Reinsurance option limited to use with insurance companies, settlements with longer durations, and other restrictions, BH's flagship insurance carrier, National Indemnity Company is "immensely capitalized."
  • Independent Life - A relative newcomer to the structured settlement arena, we featured them in our April 17, 2019 newsletter.
  • Structures - A corporation providing the structured settlements industry with access to assorted non-traditional structured settlement options, some of which are insurance based and some of which are not. Among these cutting-edge, non-fixed annuity solutions are:
  1. Settlements Plus™ and Fee Structure Plus® - Market-based deferral options allow clients and their attorneys to participate directly in the stock market.
  2. Treasury-Funded Structured Settlement™ - A structured settlement funded with U.S. Government obligations held in a trust.
  3. Fixed Indexed Annuities (FIAs) - Similar to traditional annuities in that they offer guaranteed future income; however, FIAs allow for the possibility that future income could improve depending on the experience of the market index upon which it is based.
We're passionate about this topic at our firm. In addition to researching the subject matter extensively, I've had several articles published on the topic and developed some analytical tools to help clients make the most informed decisions possible about saving money and securing their futures.

Interested in learning more? Visit our companion website, MyTaxableSettlement.com, or call to schedule our webinar "Taxable Damage Structured Settlements: A Money-Saving Alternative to Cash."

Thank you for the opportunity to be of service and best wishes to you for continued success in your personal and professional lives.

Stay safe!
Dan Finn, CPCU, MSSC™, RICP®
Master's Certified Structured Settlement Consultant™
Retirement Income Certified Professional®

"Building lifetime client relationships!"
CA Insurance License: 0A96173