It is important during negotiations that an offer to settle on a “structured” basis emphasize the tax free and guaranteed income that is generated by such an offer.
The following illustration shows a typical offer sheet which could be used during negotiations or presented during a settlement conference:
Settlement Plan for John Doe
Male – Date of Birth 12/25/1961
Current Age: 42 – Normal Life Expectancy: 33 years |
Date of Proposal: August 4, 2010
Valid Until August 11, 2010
Assumed Funding Date: September 15, 2010 |
| Annuity Benefits - Illustrative Purposes Only |
Amount |
Description |
Cost |
| $192,209 |
Cash at settlement (attorneys fees & costs, medical
liens, plaintiff cash) |
$192,209 |
| $ 1,821.75 |
Payable monthly for life, guaranteed for 20 years,
commencing one month from funding |
$307,791 |
Inclusive of Cash at Settlement |
- Guaranteed Income -Tax Free: $ 629,429
- Life Expected Income – Tax Free: $ 913,622
- Total Settlement Cost: $500,000
|
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