Annuity Pros - Blog #Structured Settlements

Eight Types of Structured Annuity Settlements

Wed, 10 Sep 2025 11:15:23 -0700

Eight Types of Structured Annuity Settlements

A structured annuity settlement is a financial arrangement where a claimant receives compensation from a legal settlement or insurance payout, business sale or real estate sale in the form of periodic payments over time, rather than a single lump sum. There are vast tax advantages to mitigate both ordinary income tax and capital gains taxes by using such Structured Settlement Annuity Products.

These payments are typically funded through an annuity, a financial product purchased from an insurance company, which provides a stream of income at regular intervals (e.g., monthly, quarterly, or annually) for a specified period or the claimant’s lifetime.

Types of Structured Settlements for Attorneys, Plaintiffs, Business Sales and Real Estate Sales to Mitigate Ordinary Income Taxes and Capital Gains Taxes

Attorney Contingency Fees (structured with tax-deferral)

Structuring your Attorney Fees offers you the opportunity to receive steady, guaranteed income with tax deferral (even if the plaintiff chooses to take a lump sum settlement):

Benefits

Custom payment streams
Tax-deferral
Hassle-free payments to either the attorney or the law firm

Qualified Assignments

Turn a claimant's settlement into a stream of guaranteed periodic payments for personal, physical injury, physical illness or workers' compensation claims and disputes.

Benefits

Tax-free income
Customized payment streams
Guaranteed Payments for Life
Payments to the beneficiary

Non-Qualified Assignments

A tax-advantaged solution providing guaranteed periodic payments for cases that fall outside of personal physical injury claims and litigation.

Benefits

Guaranteed Payments for Life
Manage taxable income and periodic payments
Leverage lower tax brackets by spreading tax liability
Financial planning opportunity as a source of reliable income

Periodic Payment Agreements

Intended for claims that are not eligible for a qualified assignment, pursuant to IRC Section 130 which include:

Pre-1997 workers' compensation
Workers' compensation cases where the carrier must remain contingently liable
Individual disability
Wrongful incarceration claims that do not involve physical injury

Structured Installment Sale

The Structured Installment Sale is an annuity that allows you to defer potentially large capital gains tax and receive guaranteed installment payments over time.

Advantages

Deferral of capital gain taxation
Conversion of asset into guaranteed income stream, immune to market volatility and performance
Payments guaranteed by financially sound and trusted companies

Buy and Hold

For use with personal physical injury, physical illness or workers' compensation claims where the defendant insurer or employer purchases and owns the annuity.

Advantages

More flexibility on product solutions

Mass Torts

Annuity Pros can work with you to develop innovative solutions for the most complex litigation settlements.

Our mass torts experience includes

Major industrial accidents
Product liability
Wrongful death actions

Funding Agreements

A funding vehicle for business-to-business transactions that provides predictable fixed future payments.

Advantages

Simplicity
Attractive returns
Preservation of principal
Customized distributions

If you’re considering an annuity, it’s crucial to work with Annuity Pros to evaluate your goals, time horizon, and the specifics of each product type. The right annuity, used the right way, can make all the difference in your financial future.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Pros Clientele

Our clientele consists of Family Offices, RIAs (Registered Investment Advisors), Broker Dealers, Advisors, Attorneys, CPAs and Accounting Firms, Claims Adjusters, Plaintiffs, Tax Preparers, Trust Companies, Consulting Firms, Banks, Insurance Brokers, Financial Advisors, Financial Consultants, Wealth Management firms, Mortgage Brokers, Human Resources Departments, Real Estate Agents, other business professionals and private individuals.

Annuity Products

Life Insurance Products

Get Started Now

What is a structured installment sale?

Tue, 09 Sep 2025 09:08:00 -0700

What is a structured installment sale?

Instead of receiving one lump sum, all parties agree to periodic payments for a stated number of years as a condition of the property sale. The periodic payment obligation is then transferred to for example MetLife Assignment Company, Inc. (MACI) by the Buyer, who pays the full premium to cover the payments. MACI takes the Buyer’s premium check for the periodic payments and purchases an annuity from for example Metropolitan Tower Life Insurance Company (Met Tower Life). Met Tower Life then issues the scheduled payments to the Seller on behalf of MACI. Both entities are wholly owned, U.S. based subsidiaries of MetLife, Inc. and, as such provide great confidence for all parties.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Why choose a structured installment sale

Selling a real estate property or business can have significant tax implications. When a seller receives their sales proceeds in a lump sum, they might face not only capital gains taxes, but also net investment income taxes and state income taxes, which are due in the year of the sale.1

Our Structured Installment Sale solution can help reduce taxes on the proceeds, while providing a stream of guaranteed income over time to help secure their financial future.1,2

What are the advantages of a Structured Installment Sale?

Tax Benefits

Deferral and potential reduction of capital gains tax, Net Investment Income Tax (NIIT) & state income tax1

Guaranteed Income

Conversion of proceeds into a guaranteed income stream, immune to market volatility and performance2

Trustworthy

Payments secured by a financially sound and trusted company3

Tax Implications of Selling Real Estate with a Structured Installment Sale

A structured installment sale (SIS) allows the seller of real estate, property, or agricultural land to be paid in future installments over a period of time, rather than a one-time lump sum. Because taxes will then be paid based on the income received each year, this structure helps the seller defer their capital gains tax and potentially decrease the overall tax liability on the sale.

Tax Implications of Selling a Business with a Structured Installment Sale

A structured installment sale (SIS) may offer beneficial tax treatment when selling a business because the taxes are paid as installment payments over a period of time, rather than being paid entirely in the year the business is sold. This allows sellers to defer and potentially reduce their capital gains taxes and other tax obligations by spreading the payments out over a longer period.

If you’re considering a structured settlement, structured installment sale or annuity, it’s crucial to work with Annuity Pros to evaluate your goals, time horizon, and the specifics of each product type. The right annuity, used the right way, can make all the difference in your financial future.

Individuals and businesses who would like to connect with Annuity Pros can get in touch instantly via our enquiry form.

Get Started Now

Structured Settlements and Annuities

Thu, 31 Oct 2024 10:33:34 -0700

Structured Settlements and Annuities

Lump sum legal settlements can be structured with annuities so that the plaintiff or person or entity receiving the money can receive income for life.

Annuities are low risk income products issued by insurance companies across the USA. Annuities help prevent people from spending the whole lump sum all in one go and leaving them with nothing left to meet their daily needs, especially if they are incapacitated in some way.

Structured settlements using annuities assist the attorney managing the case in several ways. Firstly, it brings the completion of the case to 100% fruition after a potentially long drawn-out legal battle. Secondly, it alleviates further responsibility on the attorney who may have left out how to best structure long-term income for their client from the lump sum. A lot of hard work and time goes into achieving a settlement for a client, so educating the client how best to allocate the funds in a safe manner is increasingly important. This approach gives more peace of mind long term to both parties.

Attorneys, Individuals and businesses who would like to connect with Annuity Pros about Structured Settlements and annuities can get in touch instantly via our enquiry form.

Annuity Products

Life Insurance Products

Get Started Now