Now Available from

New product offering helps clients save money
on capital gains when selling qualifying appreciated assets.
September 27, 2019 - When we opened our doors for business in 2009, we did so with a pledge to help clients "achieve maximum financial success and security through the effective use of specialty annuity products and services."

Since our inception, structured settlements have served as the cornerstone of our specialty annuity offerings and remain central to everything we do here.

That will never change.

But true to our word, when something becomes available where we can parlay our knowledge and expertise into a related field that can help our clients, we want to make sure we tell you about it.

We did that when we began offering retirement annuities and we're doing that now with something you may or may not be familiar with:


What is a Structured Sale?

In a nutshell, structured sales permit owners of qualifying appreciated assets (real estate, businesses, law firms, insurance agencies, etc.) to sell them via the installment method enabling them to defer recognition of capital gains into future years.

26 U.S.C § 453 and IRS Publication 537 guide taxpayers on the rules about the installment method of accepting future periodic payments from a qualifying sale while Revenue Rulings 75-457 and 82-122 make clear that substituting obligors (as occurs when using the nonqualified assignment document used in these transactions) does not jeopardize the preferential tax treatment accomplished by deferring capital gains.

Structured sales aren't really new - I had one of the earliest published articles on the subject in 2005 when the concept was first introduced - but they have been in the doldrums since the Great Recession wiped out everyone's equity and life markets quit offering them due to insufficient activity.

Today, with the much-improved economy showing signs of stalling and people wanting to capture their gains in case another recession occurs, conditions for structured sales could not be better.
 Enter MetLife
MetLife's announcement this week that they are now offering structured installment sales in California, Florida, New Jersey and Texas is welcome news to those of us who practice in this field. It's even more welcome news for anyone seeking to defer or eliminate capital gains.

MetLife, one of the largest life insurance companies in the United States, joins Independent Life and Midwest Trust (which offers a U.S. Treasury-backed structured sale option) in meeting this growing need.

The timing of this roll out is near perfect since we're now one year into the Tax Cuts and Jobs Act which substantially lowered the threshold for triggering a 20% (Federal) capital gains tax.

Not only can sellers potentially move from a 20% bracket to 15% or lower, they may be able to avoid the 3.8% net investment income tax (NIIT) as well. Not to mention potential savings on state capital gains taxes.

Success Story

I recently helped a client pay ZERO capital gains taxes
on an appreciated piece of property he sold

Not every appreciated asset will qualify for installment sale tax treatment and not everyone will be able to eliminate capital gains taxes altogether. But if you can save tens of thousands of dollars or more depending on the size of your transaction just by deferring your gains, isn't it worth a look?

Tax laws and tax brackets are always subject to change, so clients are urged to seek independent tax counsel before making any decisions. While we can't give tax advice, we can definitely point your CPA or tax attorney to the proper sections of the tax code so they can help you make the right decision.

So, before you sell your rental property, primary residence, inherited property, land, business, law firm, insurance agency, dental practice, Lichtenstein sculpture, or other qualifying asset, let us see how we may be able to help you save money.

IMPORTANT

Because the buyer's cooperation is necessary,
sellers must plan to structure BEFORE finalizing any sales contract.
We have all the required paperwork,
but a decision must be made in advance of finalizing.
Bonus News! New Structured Settlement Brochures Added
Before we sign off, a quick kudos to the National Structured Settlements Trade Association (NSSTA) Marketing Committee which recently unveiled three new informational brochures to help clients better understand what structured settlements are, how they work, and why they're so beneficial.

Check 'em out and let us know what you think:




We're committed to education and host additional brochures, videos, pamphlets and articles in the Learn More section of our website.

Want to learn even more?

Inquire about our hosted seminars for your next office,
law firm or professional association gathering.
How Can We Help You Secure Your Future?

We're here to help! Just call us.
I hope you found our newsletter helpful. Thank you for reading and best wishes to you for continued success in your personal and professional lives.
Dan Finn, CPCU, MSSC℠, RICP®
Master's Certified Structured Settlement Consultant℠
Retirement Income Certified Professional®

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