Most employment settlements involve a component of past or future wage replacement. The IRS views that money as being subject to employment tax. Therefore, Barco cannot structure that component of the settlement. Any money related to the lost wages should be paid out in upfront cash at time of settlement and the former employer should be responsible for employment taxes.

Any other damages such as civil rights breach, emotional, reputational, etc. can be structured.

The assignment program cannot support estate distributions because they are not settlements of disputes.  Without the constraints of a settlement, there may be risk of constructive receipt.

Because BARCO funds its obligations solely through the purchase of an annuity from Liberty life, the broker must be one who is properly licensed and appointed with Liberty Life in the structured settlement channel since it is the broker who facilitates BARCO’s purchase of the annuity.

The BARCO NQAR states that in the event that the settlement agreement is declared terminated by a court of law the NQAR shall terminate, and BARCO, as Assignee will then assign ownership of the annuity contract to the Assignor.

BARCO will not accept an assignment which is altered so that the annuity would revert to the Claimant in the circumstances queried since the claimant would suffer a significant tax liability, possibly exposing other parties of structured settlement arrangement to the attendant risk.

Single or multiple lump sum payments are acceptable in the structured settlements program.  Lump sum payments are different from ‘cash’ settlements where there are no future payments.

If there is a settlement agreement in place that creates the future periodic payment obligation, that obligation could be assigned to Barco.  Liberty Life would issue payments without 1099 reporting since child support is not included in the recipient’s taxable income.