As a plaintiff-loyal settlement planning firm, we know that while not every plaintiff may be best suited for a structured annuity payment stream, every plaintiff needs a financial plan.
Paramount offers free Pre-Settlement Planning Services to plaintiffs so that they may see the benefits of structured annuities and the tax-free* payouts that they offer.
Paramount’s Needs Assessment is a part of our Pre-Settlement Planning. The Assessment allows our advisors to address the difference between the long-term needs and immediate wants of the plaintiff.
We take the following into account and work with the plaintiff to develop a comprehensive plan that will secure the plaintiff’s financial future:
1. Will the plaintiff be returning to work after settlement?
2. Does the plaintiff have children that will be going to college in the future?
3. Is the plaintiff currently or anticipating within the near future to be the recipient of any form of public or government benefits?
4. Will the plaintiff be purchasing a new home with a portion of the proceeds?
5. Is the plaintiff currently burdened with debt?
Paramount’s advisors work with clients to determine how to best enable the plaintiff to achieve their long-term financial freedom and security so they can confidently pursue their dreams.
*Income-tax free payments
As a result of the Periodic Payment Settlement Act of 1982, and Section 104(a) of the Internal Revenue Code, all payments to plaintiffs representing compensation for or derived from physical injury in personal injury, wrongful death, workers’ compensation, wrongful imprisonment actions are generally received income tax free.
Section 104(a), allows for tax-free accrual of interest on the sum of money used to fund plaintiffs’ periodic payments.
As a result, plaintiffs are likely to receive greater benefits than would be available to them had they chosen to invest their portion of the proceeds in a taxable vehicle.