Broker Check

Structured Settlements

Introduced to claims negotiations in 1982, structured settlements have helped to conclude countless claims and guard the vital financial security of injured parties.

Offering guaranteed, tax-free income streams through the purchase of fixed annuities, structured settlements are designed to offer unprecedented protection and peace of mind to claimants. 

Guided by Internal Revenue Code (IRC) Section 104(a)(2), all settlement proceeds being paid from a personal injury or wrongful death claim are received 100% tax-free. Each periodic payment stream, which is established to meet the needs of the injured party, constitutes the structured settlement portion of the settlement. When purchased as part of the settlement (by the defense on behalf of the injured party) all principal and interest income is received as a guaranteed, tax-free benefit.

Lifetime exclusion from income, dividend and capital gains taxes.

Product Highlights:

  • Guaranteed Rate of Return

    Providing a guaranteed fixed rate of return which is unaffected by the volatility of the stock market. Due to their tax-free status the rate of return often exceeds other fixed income investment options.

  • Guaranteed Future Payments

    Encourage fiscal responsibility and investment discipline unlike many other investment options. Providing the assurance that the injured parties’ future needs will be met through guaranteed benefits being paid over a specific period or a lifetime.

  • Free Personalized Planning

    By utilizing Garrison Settlements you can develop a payment plan to meet both immediate and future financial obligations.

  • Minimal Risk

    Annuities are guaranteed through the multi-billion dollar life insurance industry. Garrison Settlements places structured settlements with some of the most secure life insurance companies in the world

  • Stress Free Management

    We believe you can have less apprehension about market fluctuations or volatility because your income is guaranteed. A structured settlement provides income free of all federal, state & local taxes.

  • No Fees or Ongoing Management Expenses

    While typical investments have fees associated with management, structured settlements do not incur any management fees. Garrison Settlements provides professional services at no out of pocket expense.

  • Preservation of Government Benefits

    Settlements can be designed to protect eligibility for government benefits such as; Social Security Income (SSI), Medicaid & Children’s Medicaid.

  • Protection

    Protection is provided against divorce, family, friends, and even your own spending habits. Many times recipients of large cash settlements become the target of the financial pursuits of others. In fact, one study showed that individuals receiving $100,000.00 or more, 90% had nothing left within 5 years. (Rutler Group, Ltd., TRG 1992)

  • Peace of Mind

    Payments will be made to meet your needs and you will always know when your money is going to be paid.

    There are unlimited payment designs available through structured settlement annuities. Payments can commence immediately upon settlement or be deferred. They can be paid on a monthly, quarterly, semi-annual or annual basis. Payments can be made for a certain period of time, or over the lifetime of the injured party. Payments may be made in a lump sum form at pre-determined dates in the future to coincide with identified future needs such as college, surgery, or major purchases like medical equipment replacement or prosthetic replacement.

    Ryan, Joe and Billwork closely with claimants and their families to identify needs and design payments to meet them. The payments are guaranteed not to change, regardless of market conditions, giving injured parties security that there will always be adequate resources available.

    The ideal settlement basis for the claimant includes a cash component to meet immediate needs, satisfy any existing liens and contractual attorney fees. A structured settlement can addresses many critical issues such as; long term care, mortgage payments, spousal support, education or retirement funds and is developed to meet the specific needs of each person and their family.

    With varied application on cases of all sizes, considering a structured settlement makes sense in nearly every circumstance. There are certain case profiles that should always consider a structured settlement annuity option as part of the settlement, and they include the following:

    • Any case involving a minor
    • MSAs
    • Temporary or permanent disability
    • Long term medical care and nursing support
    • Mental incompetency and brain injury diminished life expectancy loss of earnings
    • Wrongful death settlements involving surviving spouse and dependents

    Joe Villareal is not affiliated with United Planners.


  • Index Linked Structures

    The primary goal of an index-linked structure is the for the annuity yield to grow with market performance, while offering a guaranteed payment floor to the injured party. 

    Product Highlights:

    • Defer first payment up to 40 years
    • No investment minimums or maximums
    • Index-linked market-based growth with a guaranteed floor to hedge potential downturns
    • Flexible payment design including future lump sums
    • Backed by highly rated life insurance markets

    A fixed index annuity earns interest based on changes in an external index with a guaranteed minimum rate set in the contract.  The selected index varies from day to day and is not predictable.  When you buy a fixed index annuity you own an insurance contract – you are not buying shares of any stock index.

  • Non-Qualified Assignments

    There are structured settlements and funding agreements available that offer tax-deferred solutions to individuals who did not sustain a physical injury.

    Potential cases could include but are not limited to:

    • Employment Litigation
    • Wrongful Termination
    • Sexual Harassment
    • Discrimination
    • Mental Anguish
    • Construction Defect
    • Punitive Damages
    • Contract Disputes
    • Environmental claims
    • D&O and E&O claims
    • Attorney Fees associated with these types of cases

    The Non-Qualified Assignment (NQA), is designed to help claimants keep more of their settlement by receiving the income in multiple payments and deferring their taxes over time. Our NQA is for cases that fall outside of personal physical injury claims and litigation as defined under IRC Section 104(a)(2) and is not eligible for an IRC Section 130 qualified assignment.

    Potential Advantages of the Non-Qualified Assignment For the Claimant/Payee Include:

    • Guaranteed payments for life
    • Manage taxable income with periodic payments
    • Leverage lower tax brackets by spreading tax liability
    • A financial planning opportunity as source of reliable income
  • Funding Agreements

    A Non-Qualified Assignment Funding Agreement (NQA FA) may be used for the resolution or settlement of claims not involving a personal physical injury and which may involve non-natural person(s).

    Payment streams for this product are not subject to IRC Section 72(u). All requests for the NQA FA are first subject to completion of a Due Diligence Questionnaire which must be approved prior to quoting. All quotes must be run by the life carrier's home office.

     Benefits of the NQA FA

    • Deferral of claimant’s/payee’s tax liability
    • Transfer of risk for the insurance company or settling party
    • IRC Section 72(u)is not applicable

     Types of Claims or Disputes

     The NQA FA can be used to resolve non-physical injury claims or disputes. Some of those cases may include but are not limited to:

    • Environmental Cleanups
    • Construction Defect Claims
    • Liability Policy Buy-Outs
    • Property Disputes
    • Attorney Fees (must be approved by Defendant)

     Payout Options

    Are limited to guaranteed benefits only. No mortality or morbidity contingencies are permitted. These benefits include: 

    • Lump Sum Benefits
    • Increasing Periodic Benefits
    • Immediate or Deferred