Proving negligence as the proximate cause of personal injury also comes into play in the claim process. All personal injury claims encompass negligence as a core component, and the claimant must discharge the burden of proof by the preponderance of the evidence or on the balance of probabilities. The balance of probability means the judge believes the alleged event transpired based on the evidence adduced. Occasionally, the defendant’s actions imply egregious acts or omissions than ordinary negligence, dubbed “gross negligence” in law. Establishing gross negligence depends on proving that the wrongdoer deliberately ignored a duty incumbent upon him or her or blatantly inflicted injury on another. As Chief Justice Oliver Wendell Holmes observed in an oft-quoted statement, “Even a dog knows the difference between being tripped over and being kicked.”
Martin Lee got struck by a truck driven with wantonly and intentionally on the pedestrian pavement by an intoxicated driver. Lee instituted a lawsuit for gross negligence against the driver and the insurer for severe injuries where he got compensation money in a pre-litigation settlement. The arrangement created a future income stream with periodical payments on a monthly and annual basis, christened “structured settlements.” A structured settlement as defined in the Internal Revenue Code vests payment rights in tort claimants who can, in turn, transfer the kitty to a factoring company. The idea sprout when lottery winners started to assign their amassed payment rights to a finance company. Lee once had a whack at selling his structured settlement payments.
Sell Structured Settlement
State’s Structured Settlement Transfer Protection Laws
Lee had the protection of the state’s structured settlement legislation. After picking out a structured settlement funding company, the deal complied with the legal framework established in his state. During the pre-contractual negotiation period, Lee received adequate disclosures of specific information. The disclosure statement and transfer agreement bundles a welter of information including the total value of the payments assigned, amounts offered for transfer, the lump sum recoverable by the payee, the discounted current value of the income stream purchased and an itemized catalog of fees deductible from the proceeds of the sale.
What is the Factoring Discount?
The factoring discount in Lee’s transaction highlights the dollar value in the structured settlement sale against which the 40% Excise Tax would apply. The factoring discount represents the surplus of the total undiscounted payments transferrable divided by the lump sum cashable by Lee. Since Lee had life contingent payments, the structured settlement annuity buyer assessed his life expectancy to work out the total undiscounted payments.
Could He Get Approval from the Responsible Administrative Authority (IRC in Section 5891 (c) (5))
Lee’s transaction got the sanction of the supervisory authority rather than a court. The administrative authority refers to the tribunal which resolved the underlying lawsuit resulting to the structured settlement. The tribunal issued a qualifying order after assessing the petition filed by Lee. They had to review whether the sale satisfied the “best interests test” taking into consideration the welfare of dependents.
Present Values and Future Values
Lee’s discounted present value of his lump sum payment referred to the aggregate future payments in today’s worth. Economists apply the concept in factoring as money today equals more value than that acquired in future. The future value of all his payments had less value than its present worth due to inflation. Inflation rapidly increases by the day, and the dollar value keeps declining.
Lee Opted for A Full Whack Buyout
Lee needed a full buyout to get his hands on the money and invest it. The tribunal considered his proposed plans for the proceeds of the sale and found he had a strong impetus to get official approval to sell.
Top 3 Structured Settlement Financing Companies Well-Grounded in Factoring Transactions
JG Wentworth abides by all state and federal laws in all factoring transactions, files competent applications in court, and convinces the judge to sign off your deal with a qualifying order to legitimize the transfer of payment rights under annuities, structured settlements and lottery winnings.
Peachtree Financial Solutions deploys a personal representative, crafts a personalized transfer agreement and disclosures while serving documents to insurance companies to get their appropriate consent and resolve contentious issues before the court hearing.
SenecaOne will give you an unbeatable price offer for the discounted present value of your structured settlement payments, wholly or partially at the lowest transactional costs. As a renowned buyer of annuities in the US, the company offers a vast range of financial options to annuitants.