Structured Settlements Flashcards
1
Q
normal award and SS
A
normal award = 1 00k payment. SS= 5 30k awards - either way both excludable.
2
Q
DIFFERENCE BETWEEN SS AND normal award
A
Normal award: get 100k invest, earn 50k in interest, its taxed. IN SS its essentially a loan, from P to D for award and extra cash is interest. but it isnt taxed.
3
Q
law favors
A
strucutred settlements tax free interest income.
4
Q
issue with structured settlements
A
frustration and sell to a JG gentworth.
5
Q
damage generall excludable
A
under 104 a 2 if award stems from physical injury/sickness.
