Structured settlements, still your best option.

In this weeks edition of Speaking of Settlements, Mark Wahlstrom discusses the various options available to trial lawyers and their clients when deciding where to put their settlement proceeds. Over the last 30 years one choice has stood the test of time, a structured settlement, and with today's exceptionally unstable economy and week financial markets the structured settlement annuity looks better and better.

The fact is we are looking at a mortgage crisis that has caused massive instability in financial institutions in the US, with bank failures escalating sharply, real estate plunging in value, commercial lenders and brokerage houses scrambling for cash in the face of liquidity needs and plunging asset values, and now the looming monetary inflation that will pound long term bond holders.

In this video Mark goes over the benefits of a structured settlement annuity in these troubled times and compares it to most of the other financial options available to the average citizen attempting to use their settlement wisely.

Check out this video and watch for each weeks edition of Speaking of Settlements.

Final regulations on section 1.468b-6 trusts

On this weeks Speaking of Settlements, the weekly podcast feature of The Settlement Channel, I am joined once again by noted tax law attorney Robert Wood of the firm Wood & Porter of San Francisco, CA. The reason for having Rob back two weeks in a row is the news that the Treasury has issued final regulations on section 468B-6 trusts and I wanted to get copies and material to my audience as soon as possible.

Now, before anyone gets too excited, these regulations and final rules are NOT related to the more commonly discussed 468B trust that is used for litigation and mass torts. These rules are not related to those trusts or the pending issue before Treasury regarding the taxation of single claimant structures, as much as we would like to get that ruling after all these years of waiting.

No, this podcast is relative to the section of those trusts that govern a variety of other trusts, but specifically those related to section 1031 exchanges and the trust accounts used to manage those transactions. Now, before you go away and don't read this, keep in mind that Allstate Life has their structured sale product, which is a vital element of the 1031 fall back or fall out market so knowledge of these provisions is of keen interest if you are involved in that market.

I know it's a small niche as of yet, but a lot more producers should be looking at the 1031 fallback or fall out market as a means of getting into the structured sales arena. So take a few minutes, click on this link, and learn a little more about 468B-6 trusts and the new rules on section 1031 exchanges. 

You can also read more on these regulations and obtain a copy of this ruling by going over to The Tax Law Channel and looking for the pdf copy of the regulations.

468b regulations that impact section 1031 like kind exchanges finally published

In some rare good news out of the US Treasury department we finally obtained new, final regulations on the application of IRC code section 1.469B-6 trusts. While at first read a lot of structured settlement professionals will be getting all excited and thinking that this is the long awaited ruling from Treasury on 468B qualified settlement funds and single claimant cases, it is in fact related to the issue of escrow accounts, trusts and other funds used during deferred exchanges, such as a section 1031 like-kind exchange.

However, while this is not really relevant to the mass tort and multi-claimant aspect of the structured settlement industry, it is of intense interest to the people over at Allstate and for those of us who are actively in the structured sales business. As we all know this area has languished as a result of a very slow build up in knowledge and familiarity with these annuities, but with a very likely capital gains tax increase on the horizon with the 2009 U.S. Congress the viability of tax deferral of capital asset sales using a structured sale annuity will be of far greater interest to tax payers and tax experts. 

The area of 1031 like kind exchanges is a further subset and niche in that market, but one with immense potential for those settlement professionals willing to invest the time, talent, marketing and process to make it a new line of business. My day job at Wahlstrom & Associates has been focused on this area for over two years and these clarifications should be welcome news in marketing to qualified intermediaries and others who inhabit the 1031 exchange world. 

I will be hosting Attorney Robert Wood, principal of Wood & Porter of San Francisco and the lead commentator on The Tax Law Channel, our newest channel here on LBN. If you want to know more about this ruling, obtain a pdf copy of it or investigate how you can start to work in this market, give me a call or send me an email after our podcast later this week. 

Again, it's not the long awaited 468b single claimant ruling, but it's almost as good if you are in the structured sales market.