Personal-injury and wrongful-death settlements provide claimants with tax-free recoveries. Structured settlements provide those claimants with dependable tax-free income for years, or the claimant’s lifetime, guaranteed by some of the highest-rated insurance carriers in the country.
Unfortunately, in the current environment, the rates of return on those structured settlements are very low, often less than 3%, and much lower than a market rate of return. The Pass Structured Settlement provides a market rate of return on those settlements. The Pass Structured Settlement is, of course, for the sophisticated investor who understands the risks of financial markets and requires a minimum of $500,000.
Investments in the Pass Structured Settlement are the responsibility of Pass Advisors, Ltd, but will be guided by recommendations of a broker or trust company approved by the claimant.
Frequently, catastrophic injury cases end up in a trust for investment to provide for the care of the injured claimant for the rest of their life. One of the downsides of the trust solution is a high tax rate on investments.
The Challenge: How can the trustee get the highest after-tax return on the invested assets and defer those high tax rates.
The Solution: The Pass Structured Settlement Solution lets the trustee invest the assets, for a market rate of return, through a variable annuity. The funds will grow tax free during the accumulation period and be distributed to the trust tax fee.
If you are looking into setting up a special needs trust or any other trust, let us show you how we can help.