A structured settlement is a guaranteed tax-free paycheque, only available to people who are settling personal injury claims. It’s created when a part of a personal injury settlement is deposited with a life insurance company in exchange for guaranteed tax-free payments for a plaintiff’s lifetime or a certain period of time.
Settlement money is often paid to provide for lost wages and future medical and care needs that are required as a result of an injury. Knowing the importance of these needs, many people are reluctant to take risks with this money.
Earnings on ordinary investments are taxable. Most investments offering higher returns are risky and charge annual management fees. Earnings from ordinary investments may also eliminate or reduce access to many income-tested government benefits and credits. Since structure payments are not considered income, they enable people to maintain that eligibility and keep more money in their pocket.
The McKellar Structured Settlement is the ideal solution…certainty of payment, preservation of benefits, with no fees charged and no income tax payable—ever!