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It is
important to consider
the tax implications
and security of any
settlement. Structured
settlement annuities are
the only way to make a
personal injury
settlement completely
free of taxes. A
structured settlement’s
principal and interest
are not subject to
taxes.
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Most
people fail to consider
the effects Federal,
State and local taxes
have on the income they
expect to receive from a
cash investment, and
they usually ignore
the fees associated with
most investment
purchases.
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Because
the Internal Revenue
Code allows for a
tax-free accrual and
payout of interest,
injured parties receive
greater benefits through
a structured settlement
plan than they would
otherwise achieve if
they invested the money.
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A
structured settlement is
more than an annuity. A
structured settlement is
a way of protecting all
or a portion of the
injured person’s
settlement funds.
Furthermore, it’s a way
of increasing the
value of the settlement,
since settlement
annuities not only pay
out more than a lump
sum, but the entire
amount is tax free.
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The
key to the security
of a structured
settlement is ensuring
that it is done
correctly.
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