Structured Settlement Payments and Getting Your Facts Straight

A structured settlement is a financial arrangement wherein someone receives payment on a structured basis.  This arrangement was created to the mutual benefit of both the one receiving and the one paying the settlement.  These payments are also set up to reduce the financial burden placed on the insurance companies if they had to pay the full amount upfront.  If you were awarded $1,000,000 for example and the insurance company was forced to pay this all at once it would pose a large burden.  Settlements are arranged so the insurance company can pay you over time.  As a reward for accepting these structured payments you will end up receiving a greater sum of money because you earn interest in the money yet to be paid. In this way the settlement is designed to help the liability holder pay off the compensation over an agreeable period of time, be aware of this if you want to purchase structured settlements.

Now that you know how the structured settlement benefits the liability holder it is also important to know how it benefits the one receiving the settlement as well.  If you are the one who has won the settlement you can structure the income in a variety of ways to meet your current and future needs.  This is done because any time there is a lawsuit the amount the offended party is seeking is usually ridiculously high.  This is done to incentivize the defendant to see that it will cost more in legal fees and if they were to lose and have to pay the huge amount it may be better to offer a settlement.

So an amount is agreed upon from the defendants accountants and the offer is made to the plaintiff.  Here is where some negotiating may take place on the specified amount but once the value is agreed upon the lawsuit is dropped and a settlement is arranged.  Often times you will hear of big corporations who were being sued and then they ‘settled out of court.’  This just means they offered the one suing them a sum of money in exchange for dropping the lawsuit.

If you are offered a settlement you can choose to receive a large amount upfront or receive payments over time.  By choosing payments over time you will receive more money in the end but it comes to you on a scheduled plan, say $3,000 per month for 20 years.  This may seem like a great option but often times you can make more if you wisely invest the larger upfront payment.  But now that you have the facts you will be able to make a better decision when you structure your settlement.

Structured settlement factoring transaction

A structured settlement factoring transaction describes the selling of future structured settlement payments (or, more accurately, rights to receive the future structured settlement payments). People who receive structured settlement payments may decide at some point that they need more money in the short term than the periodic payment provides over time. An example would be the payment of personal injury damages over time instead of in a lump sum at settlement. The reasons are varied but can include unforeseen medical expenses for oneself or a dependent, the need for improved housing or transportation, education expenses and the like. To meet this need, the structured settlement recipient can sell (or, less commonly, encumber) all or part of their future periodic payments for a present lump sum.
History

Structured settlements experienced an explosion in use beginning in the 1980s.[1] The growth is most likely attributable to the favorable federal income tax treatment such settlements receive as a result of the 1982 amendment of the tax code to add § 130.[2] [3] Internal Revenue Code § 130 provides, inter alia, substantial tax incentives to insurance companies that establish “qualified” structured settlements.[4] There are other advantages for the original tort defendant (or casualty insurer) in settling for payments over time, in that they benefit from the time value of money (most demonstrable in the fact that an annuity can be purchased to fund the payment of future periodic payments, and the cost of such annuity is far less than the sum total of all payments to be made over time). Finally, the tort plaintiff also benefits in several ways from a structured settlement, notably in the ability to receive the periodic payments from an annuity that gains investment value over the life of the payments, and the settling plaintiff receives the total payments, including that “inside build-up” value, tax-free.[5]

However, a substantial downside to structured settlements comes from their inherent inflexibility.[6] To take advantage of the tax benefits allotted to defendants who choose to settle cases using structured settlements, the periodic payments must be set up to meet basic requirements [set forth in IRC 130(c)]. Among other things, the payments must be fixed and determinable, and cannot be accelerated, deferred, increased or decreased by the recipient.[7] For many structured settlement recipients, the periodic payment stream is their only asset. Therefore, over time and as recipients’ personal situations change in ways unpredicted at the settlement table, demand for liquidity options rises. To offset the liquidity issue, most structured settlement recipients, as a part of their total settlement, will receive an immediate sum to be invested to meet the needs not best addressed through the use of a structured settlement. Beginning in the late 1980s, a few small financial institutions started to meet this demand and offer new flexibility for structured settlement payees.[8] In April 2009, financial writer Suze Orman wrote in a syndicated column [1] that selling future structured settlement payments "is tempting but it's typically not smart."
Process
Pre-2002

Congress enacted law to provide special tax breaks for payments received by tort victims in structured settlements, and for the companies that funded them. The payments were tax free, whereas if the tort victim had been given a lump sum and invested it themselves, the payments from those investments would be taxable.

Companies liked structured settlements because it allowed them to avoid taxes to a certain extent, and plaintiffs liked them because it allowed them to receive tax-free payments of what became, over time, a much larger amount of money than the original amount paid out by the settling party. Such settlements were also considered an especially good idea for minors, as they held the money safe for adulthood and ensured that youth would not find the money wasted or ill-spent. “Despite the best intentions of plaintiffs, lump sum settlement awards are often quickly dissipated because of excessive spending, poor financial management, or a combination of both. Statistics showed that twenty-five to thirty percent of all cash awards are exhausted within two months, and ninety percent are exhausted within five years.” Andrada, “Structured Settlements – The Assignability Problem,” 9 S. Cal. Interdis. L.J. 465, 468 (Spring 2000).

An explanation of IRS Code section 130 was given during discussions of possible taxation of companies that bought future payments under those structured settlements. “By enacting the PPSA, Congress expressed its support of structured settlements, and sought to shield victims and their families from pressures to prematurely dissipate their recoveries.” 145 Cong. Rec. S52281-01 (daily ed. May 13, 1999) (statement of Sen. Chaffee).

Congress was willing to afford such tax advantages based on the belief that the loss in income taxes would be more than made up by lower expenditures on public assistance programs for those who suffered significant injuries. A strict requirement for a structured settlement to qualify for this tax break was that the tort victim was barred from accessing their periodic payments before they came due. It was for this reason that the annuity had to be owned by another who had control over it. The tort victim could not be seen to have “constructive receipt” of the annuity funds prior to their periodic payments. If the tort victim could cash in the annuity at any time, it was possible that the IRS might find constructive receipt.

“Congress conditioned the favorable rules on a requirement that the periodic payments cannot be accelerated, deferred, increased or decreased by the injured person. Both the House Ways and Means and Senate Finance Committee Reports stated that the periodic payments as personal injury damages are still excludable from income only if the recipient is not in constructive receipt of or does not have the current economic benefit of the sum required to produce the periodic payments.”

Testimony of Tax Legislative Counsel Joseph M. Mikrut to the Subcommittee on Oversight of the Committee of Ways and Means, March 18, 1999. “These factoring transactions directly undermine the policy objective underlying the structured settlement tax regime, that of protecting the long term financial needs of injuries persons . . . “ (Id.)

Mr. Mikrut was testifying in favor of imposing a punitive tax on factoring companies that engaged in pursuit of structured settlement payments. Despite the use of non-assignment clauses in annuity contracts to secure the tax advantages for tort victims. companies cropped up that tried to advantage of these individuals in ”factoring” transactions, purchasing their periodic payments in return for a deeply discounted lump sump payment. Congress felt that factoring company purchases of structured settlement payments “so directly subvert the Congressional policy underlying structured settlements and raise such serious concerns for the injured victims,” that bills were proposed in both the Senate and the House to penalize companies which engage in such transactions. (Id.)

Before the enactment of IRC 5891, which became effective on July 1, 2002, some states regulated the transfer of structured settlement payment rights, while others did not. Most states that regulated transfers at this time followed a general pattern, substantially similar to the present day process which is mandated in IRC 5891 (see below for more details of the post-2002 process). However, the majority of the transfers processed from 1988 to 2002 were not court ordered.[9] After negotiating the terms of the transaction (including the payments to be sold and the price to be paid for those payments), a formal purchase contract was executed, effecting an assignment of the subject payments upon closing. Part of this assignment process also included the grant of a security interest in the structured settlement payments, to secure performance of the seller’s obligations. Filing a public lien based on that security agreement created notice of this assignment and interest. The insurance company issuing the structured settlement annuity checks was typically not given actual notice of the transfer, due to antagonism by the insurance industry against factoring and transfer companies. Many annuity issuers were concerned that factoring transactions, which were not contemplated when Congress enacted IRC 130, might upset the tax treatment of qualified assignments. HR 2884 (discussed below) resolved this question for annuity issuers.

Yahoo Domains: Your A-Z Guide to Picking & Registering a Domain

Choosing the right domain name and domain name provider is the first step to creating your new website. Yahoo! Domains is one of the leading domain registrars in the world and has the backing of Yahoo!, a leading internet company. In fact, Yahoo! hosts its domains and websites on the very same servers as Yahoo.com, making it the most reliable domain and hosting provider in the industry. In addition, Yahoo! provides domain names for as little as $3.95 per year(for new customers)and $12.95 for existing customers, with no set up fees. Other, domain providers charge as much as $35 per year and do not provide as many features or functionality as Yahoo! For example, Yahoo! Domains is one of the few companies that provides 24/7 toll free phone and email support.

Ratings and Recommendations

The biggest strength of Yahoo Domains is that it is backed by the reputation and security of Yahoo, one of the largest internet companies in the world. You do not have to worry about Yahoo going out of business and losing your domain, like you might with other lesser known domain providers.
Also, Yahoo Domains, unlike many domain providers, offers phone/email service. Yahoo Domains has very few weaknesses especially if you can take advantage of the $3.95 domain name offer (used to be $1.99).
If you are looking for a cheap,reliable, and secure domain registration company then we highly recommend Yahoo! Domains. However, Yahoo! Domains is not recommended if you need to purchase multiple domain names or you require advanced hosting features like virtual or dedicated servers.

Yahoo Domains Rating

Price Value	A ($3.95 for first time users)
Reliability	A+
Security	A
Customer Support	B
Web Hosting Offers	B
User Feedback	B
Overall Grade	A-

Quick Domain How To's, Tips, & Advice

Buy Yahoo Web Hosting, get your Yahoo Domain Name for Free
Many people do not realize that you need to purchase web hosting services after you buy a domain name. We recommend that you purchase Yahoo! Web Hosting and get the domain for free, so you can start building your site immediately. We have provided below the lowest possible price on the internet for Yahoo! Web Hosting.

What is a Domain Name?
A domain name can be thought of as the “address” for your website. Most domains consist of the primary name, plus a top level domain name extension such as .com, .org, or .net . For example, for Yahoo.com the name is “Yahoo” plus the top level domain name extension of .com.
For more background on domains please visit this page.
Picking and Registering a Domain
The most difficult aspect in choosing a domain name is finding a name that you like that is not already in use. The basic rules are simple (maximum length of 63 letters, no special characters such as %, &, *) but most of the obvious and attractive names have already been taken. We recommend that you go to Yahoo Domains Home Page and use their domain availability tool.
For more advice on picking a domain name please visit this page.
Domains, Web Hosting, and E-commerce
Many people do not realize that buying a domain name is only the first step in getting your website up and running. All providers also require that you also purchase a web hosting package with your domain name or provide the hosting services yourself.
90% of all web sites are hosted by shared hosting providers such as Yahoo! Web Hosting, Godaddy, or Ipowerweb. We suggest Yahoo! Web Hosting if you are considering purchasing a web hosting service. Not only do you get a free domain name (from Yahoo! Domains) when you buy a Yahoo! Web Hosting plan, but you also get 24/7 toll free phone support from one of the most trusted companies on the internet. Click here for more information about Yahoo! Web Hosting.
Furthermore, if you want to sell your goods or services online, you will either need to buy online shopping cart software like Miva or Paypal our purchase an e-commerce hosting service like Yahoo’s Merchant Solutions. We recommend Yahoo Merchant Solution because it is a turn key e-commerce solution that includes a free domain, set up consulting, and 24/7 service from an established company like Yahoo. Click here to visit Yahoo Merchant Solutions for more info.
Yahoo! Small Business
Yahoo! Domains, Yahoo! Web Hosting, and Yahoo! Merchant Solutions are all a part of Yahoo! Small Business. Yahoo! Small Business provides a suite of online services that helps you get online, advertise online, and sell online.
Yahoo Domains is the cornerstone of the Yahoo Small Business suite of domain,hosting, and e-commerce related products. Yahoo Domains has partnered with Melbourne IT, who provides the backend technology for Yahoo’s domain name registrations service.
Click here for more information about Yahoo! Small Business.

Laser Hair Removal Washington DC

Laser hair removal in Washington DC is quickly becoming one of the most popular cosmetic procedures for both men and women. If you are sick and tired of shaving, waxing, or tweezing unwanted hair on a daily or weekly basis, and are looking for a more permanent solution, we have exactly what you need. Many men and women are turning to the latest trend in hair removal - the laser.  For those interested in our revolutionary non-invasive procedure, here are all the facts that you need to know before you go under the light. This procedure has been hyped around the globe as the permanent solution to unwanted hair removal and has shown great promise in delivering on that claim. However, before investing your valuable time and hard earned money into Laser Hair Removal treatments, we suggest you do a little research.

The effect of removing unwanted hair by laser was first discovered by dermatologists in the late 1960s.  Dermatologists discovered that during treatment for skin conditions with lasers, the removal of hair in the treatment area happened to be a side effect and because of this, lasers have been studied extensively for years for their hair removal effectiveness.  Many different types of lasers have since been approved by the FDA and now professional treatments for Laser Hair Removal in Washington DC are available to all interested residents.

Today, Laser Hair Removal in Washington DC is one of the fastest growing non-invasive cosmetic procedures on the market.  Last year alone, over one million individuals underwent laser treatments around the globe.  At our Washington DC clinic, all of the technicians are trained and certified on the latest laser hair removal equipment; this guarantees professional Laser Hair Removal treatments each and every time you visit.  To learn more about our approach to this extraordinary treatment, come in for a free and confidential consultation.  We’ll give you all the information you need and get you set up for a series of Laser Hair Removal treatments at our Washington DC clinic that will leave you with nothing but hair free skin!

For more detail visit Laser Hair Removal Washington DC site

Five Important Actions to Take after a Truck Accident

If you have been involved in an accident with a commercial truck - it’s critical you take the following actions:

1. Seek medical help immediately if you are injured. You have the right to a physician of your choice. Keep records of all treatment received, medications prescribed, and medical recommendations given by the doctor.
2. Document the accident
   
   • Take photos of the scene, if possible
   • Interview witnesses and get their contact information
   • Write down everything you remember from the accident
   • Get a copy of the accident report
3. Report the accident to your insurance company Only provide the contact information for the other drivers involved.
4. Don’t agree to sign anything or provide a statement to an insurance company. This could possibly forfeit your rights to seek further damages once the full impact of your injuries is known.
5. Call for help. You need an experienced Chicago truck accident lawyer that can help you determine the best course of action. We can determine if you have a case and how much compensation you may be eligible to receive.

Interstate trucking industry is heavily regulated to protect public safety - we can help you seek the compensation you deserve. Our law office understands the complicated laws that apply to all types of truck accident cases:

• Truck driver error or negligence — Fatigue, drug use to stay awake, driving too fast for the conditions, traffic violations, misjudging distances, crossing the center line, improper lane change, or pulling out in the path of other motorists
• Improperly maintained truck — Worn brakes or tires, burnt out lights, overweight or unbalanced loads
• Trucking company negligence — pressure to speed and/or drive without mandated rest, inadequate training, negligent hiring of truckers with bad records
• Road conditions — poorly maintained roads, messy and confusing construction, unclear signage, improperly designed roads. NOTE: Claims against government entities have strict filing deadlines, usually as short as six months
• 
  For more detail visit Chicago personal injury attorney site

Five Important Actions to Take After a Car Accident

Chicago personal injury attorne
A car accident happens so quickly. Certainly it’s not something you can prepare for - but it’s critical to take these steps afterwards to protect yourself.

1. Seek medical help immediately if you are injured. You have the right to a physician of your choice. Keep records of all treatment received, medications prescribed, and medical recommendations given by the doctor.
2. Document the accident
   
   • If possible, take photos of the scene (damaged vehicles, any property involved (guard rails, signs, buildings, etc), skid marks, debris and injuries).
   • Interview witnesses and get their contact information
   • Write down everything you remember from the accident. Show the position of the cars after the accident. Step off exact distances of skid marks and other important distances.
   • Get a copy of the accident report
3. Report the accident to your insurance company Only provide the contact information for the other drivers involved.
4. Don’t agree to sign anything or provide a statement to an insurance company. This could possibly forfeit your rights to seek further damages once the full impact of your injuries is known.
5. Call for help. The law office of Robert Martwick can determine if you have a case and how much compensation you may be eligible to receive. Don’t accept an unfair settlement from the insurance companies - you may be entitled to more.

This is a very stressful time and we can help you determine the best course of action. We’ll fight relentlessly so you can collect the money you deserve to cover costs associated with your injury and treatment, future medical care, pain and suffering and lost earning capacity. Our law office understands the ins and outs of all types of car accident cases:

• Another driver - drunk driver, hit and run
• Defective product (for example defective seatbelts, tires or brakes)
• Road conditions - poorly maintained roads, messy and confusing construction, unclear signage, improperly designed roads. NOTE: Claims against government entities have strict filing deadlines, usually as short as six months.

A car accident injury shouldn’t ruin your chance to lead a full life. The choice is yours to seek the compensation you deserve for your auto injury and send a clear message about the importance of safety for all.

For more detail visit Chicago personal injury attorney site

One of the Levi's Marketing Strategy:

Consumer research told Levis that customers found shopping for dress pents gave remarks as: slacks dept were dirty, finding the right size was difficult, and getting alternation was frustrating. Customers wanted Cash and Carry, off-the-rack dress pents. So Levi's devised a carefully crafted strategy to overcome the typical male distaste for dress pents shopping. Slates were sold in scientifically tested selling areas consisting of mohogany-toned circular store displays that allows easy access to the various styles and sizes. Levi's also responded with off-the-rackpants that require little altering. whereas most dress pents come only in even waist sizes, forcing alternations for off-size men, slates also come in odd sizes. All slates are hemmed and cuffed and have double pleats in the front. For customers with larger waist sizes, the pleats are more kindly placed.

posted by Abd ur Rehman

Marketing Online - Men and Women Use the Internet Differently..

When it comes to marketing online, you must understand your consumers. This means learning what they look for, and how they use the internet. This can help you grab their attention and get your marketing message in front of the right audience.

It's also important to realize that when it comes to online habits of men and women - they differ. I know, surprise! In the past there has been a lag with women when it came to the adoption of the internet, that is no longer the case. Truth is, studies show that women under the age of 65 are quicker to use the internet than men. As women we love to use the internet for research, where men prefer to use it as an entertainment tool. Do you see how this information can help?

When we review studies that have been done on the different ways that men and women use the internet, we can gain a greater deal of knowledge on how to position our products online.

Let's take a look at what a past study done by Pew Internet and American Life showed, while this study was done in 2005 I still believe much of the knowledge is applicable and can be used today.

Men are more likely to use the internet to:

• Read the news
• Buy travel services or make reservations
• Check sports scores and gather sports information
• Stay updated on political news
• Participate in online auctions, such as ebay
• Write content to publish online
• Download music
• Buy and sell stocks, bonds and mutual funds

A Forrester study done in 2007 also showed that on the average men tend to stay online longer and devote more time to online entertainment and researching technical gadgets.

Women use the internet to:

• Get health information
• Read spiritual and religious information
• Gain access and participate in support group websites

A few other interesting statistics that were provided in a different study done by Burst Media in the beginning of 2009 stated the following:

• 62.3% of women use the internet as their primary source for information on the products they were considering purchasing.
• 51.7% of the women studied use the internet as the primary way to keep in touch with their families

As you can see men go online to be entertained and hunt down information, where women tend to go online to gather information that assists them in nurturing, themselves and those around them. Clearly while both men and women generally spend allotments of time online, gender stereotypes are prevalent in what they do with their time online.

Putting it to Use: Think about who your potential customer is online. Is the majority male or female? Can you see how this information can assist you in not only where but how to position your product or service in order to increase the conversions you gain online? How will you use this information in upcoming marketing campaigns?

http://marketing.about.com/od/internetmarketingstrategy/a/genderdifferences.htm

Four Small Business Marketing Steps You Need to Put Into Check

I think the biggest mistake we make in marketing is making everything so difficult for consumers to understand that they don't get it. Literally. And if they don’t get it, they usually don’t feel compelled to act, buy, etc. ... you see where I’m going with this.

Marketing is about informing consumers about your products and services and telling them why they should pick you over your competitor - it really is that simple.

Are you doing that? If you are not it's time to really analyze your marketing strategy and evaluate the point you’re trying to get across.

I daily watch small businesses try to market like big companies, when in fact they've missed the core components that will get a person to buy their products or services. My first piece of advice is stop trying to compete with the "big dogs" - find your own niche and your own market and become one of the big dogs.

How do you do this? It's by moving a customer from the point of just attracting their attention to inspiring them to actually take action - which is making a purchase from you. There are four steps to doing this.

• Step 1: Get their attention
  You have competition, it doesn't have to be a lot of competition - but you have competition. It is up to you to get the attention of your consumers. Do you know how to do that? You speak to their need. You inform of them of the solution that you provide. If you don't provide a solution – it’s time to get back to the drawing board.
• Step 2: Create a marketing message that speaks to them.
  You know your solution, now you have to create a message that says "I’m your answer." Have you done that with your marketing message? If not, why do you think they will buy your products or services? If you don't inform them about your product who will? Craft your marketing message so it's easy to understand and a consumer doesn't want to walk out of a store without purchasing your product or service and taking advantage of it right away. Your marketing message has to speak about the solution as well as creating an urgency for the need. Have you done that? If not, again take it back to the drawing board!
• Step 3: Evaluate different marketing methods
  You have to evaluate the different marketing methods and really evaluate which ones will work for you. For example do you serve a market that is more drawn to the Yellow Pages or Twitter? Do they spend more time watching television or surfing the internet? Be aware of and informed about different marketing methods and which ones will work with your market. It's not a one size fits all deal.
• Step 4: Use marketing methods that are visible to your consumer
  The reason you need to evaluate the different marketing methods are so you can select the methods that are more visible to your potential purchaser. Why advertise in the Yellow Pages if your consumers are searching the yellow pages? Why spend money on television advertising if they are spending more time surfing the internet? When you select the right marketing methods, you create a placement that your potential consumers will see. When you select the wrong methods of marketing, you might as well throw your money out the window.
• http://marketing.about.com/od/strategytutorials/a/smallbusinessmarketing.htm

Quantity vs. Quality and Exclusion by Two-Sided Platforms

It is common for two-sided platforms to deny participation to some potential customers, who would otherwise be willing to pay the platforms' access and/or transaction fees. Videogame console manufacturers such as Microsoft, Sony, and Nintendo, for example, restrict access to a select set of game developers and exclude many others by including security chips in their consoles, even though the latter would also be willing to pay the per-game royalties levied by the manufacturers. Apple routinely excludes certain application developers from its highly popular iPhone store. Professor Andrei Hagiu builds a simple model formalizing profit-maximizing two-sided platforms' choice of exclusion policies, which is fundamentally determined by a tradeoff between quality and quantity.

http://hbswk.hbs.edu/topics/marketing.html