Unfortunately, catastrophic accidents and injuries can occur, and the financial services associated with those life-changing events require unique considerations.
UBS has Financial Advisors who can help you in these events by offering extensive experience in wealth management, investment planning and customized insurance products, including structured settlements. A structured settlement is a voluntary agreement that is sometimes used to settle a claim or lawsuit involving an injured or deceased person. It provides for the settling party to receive compensation in the form of a series of periodic payments made over time, rather than receiving a lump-sum payment. These periodic payments may be designed to cover medical, living or other expenses. The potential benefits of a structured settlement include: - Tax-free income to the claimant.
- Customized payment stream to meet the claimant's personalized needs.
- Mitigation of the risk of mismanagement or inappropriate spending of the settlement proceeds.
- Mitigation of market risk and asset management fees.
Structured settlements may be appropriate in the following circumstances: - Wrongful death when the surviving family has income needs formerly met by the decedent's salary.
- Permanent disability.
- Minors or incompetent individuals needing guardians.
- Recipients with limited financial experience.
A structured settlement agreement may be made privately (e.g., in a pre-trial settlement) or may be required by court order. Structured settlement payments are provided through a structured settlement annuity — a type of financial contract issued by an insurance company — which is designed to be a steady and consistent tax-free source of income over a period of years. The tax treatment of a structured settlement, similar to all settlements for personal injury, is governed by Sections 104(a)(2) and 130 of the Internal Revenue Code (IRC). The use of a structured settlement is irrevocable, and is not appropriate for everyone. The analysis and decision associated with it should be made only after consulting with legal, tax and financial advisors. UBS has worked with structured settlement issues for more than 30 years — in scenarios that included personal injury, mass tort litigation, special needs trusts, disability claims and workers compensation. Currently, UBS is the only major wirehouse that can invest and manage all of the settlement dollars involved in a transaction (e.g., attorney fees, structured settlement, trusts and money management). If you are in a situation where a structured settlement may be appropriate, contact UBS's Structured Settlement team, the Martin Arnold Group, at 877-UBS-8001 (877-827-8001) or structuredsettlement@ubs.com to discuss your needs and how we might be able to help. |
