Employment Structured Settlements

Punitive damages are awarded only if the defendant’s conduct is deemed as malicious or in reckless disregard of rights.

Conduct deemed as malicious is accompanied by ill will, spite, or for the purpose of injuring another party. With that being said, punitive damages are only awarded in special cases where compensatory damages are considered to be insufficient. They are awarded by the court as a means to prevent under-compensation, as a way to compensate for undetectable wrongful acts, and/or for taking a strain away from the criminal justice system.

Incredible Benefits

Tax Advantages

Electing to receive periodic payments prior to settlement provides the opportunity to receive income in a more tax-efficient manner.

Guaranteed Payments

The schedule of payments is determined at the front end of the transaction, resulting in a steady source of safe, reliable income for the claimant.

Rate of Return

With a locked-in rate of return, injured claimants can rest assured that market volatility will not affect their structured settlement payments.

Important To Know

Because they are paid in excess of the plaintiff’s compensation, the plaintiff has the burden of proving that punitive damages should be awarded by a preponderance of the evidence. “Preponderance of the evidence” is also known as the burden of proof, in which the plaintiff must shift the accepted conclusion away from an opposing opinion to his/her own.

For the benefit and protection of the claimant, we help ensure that the settlement will distinctly allocate funds between taxable (punitive) and nontaxable (compensatory) damages.

This is why it is of vast importance to work with professionals who specialize in Structured Settlements, as we do at Vega Settlement Group.

Take the next step.

We specialize in offering our clients the confidence that only long-term planning can provide.

judge gavel and money on brown wooden table

Punitive Damages

Punitive damages are awarded only if the defendant’s conduct is deemed as malicious or in reckless disregard of rights.

Conduct deemed as malicious is accompanied by ill will, spite, or for the purpose of injuring another party. With that being said, punitive damages are only awarded in special cases where compensatory damages are considered to be insufficient. They are awarded by the court as a means to prevent under-compensation, as a way to compensate for undetectable wrongful acts, and/or for taking a strain away from the criminal justice system.

Incredible Benefits

Tax-Free

IRS Code 104(a)(2) stipulates that periodic payments in the form of a structured settlement are 100% tax-free

Guaranteed Payments

The schedule of payments is determined at the front end of the transaction, resulting in a steady source of safe, reliable income for the claimant.

Rate of Return

With a locked-in rate of return, injured claimants can rest assured that market volatility will not affect their structured settlement payments.

Important To Know

Because they are paid in excess of the plaintiff’s compensation, the plaintiff has the burden of proving that punitive damages should be awarded by a preponderance of the evidence. “Preponderance of the evidence” is also known as the burden of proof, in which the plaintiff must shift the accepted conclusion away from an opposing opinion to his/her own.

For the benefit and protection of the claimant, we help ensure that the settlement will distinctly allocate funds between taxable (punitive) and nontaxable (compensatory) damages.

This is why it is of vast importance to work with professionals who specialize in Structured Settlements, as we do at Vega Settlement Group.

Take the next step.

We specialize in offering our clients the confidence that only long-term planning can provide.

Young injured woman lying on the road after a car accident, unconscious.

Personal Injury

Victims of Personal Injury claims have the right to be compensated for damages caused to them by the negligence of others.

There is a low minimum and no maximum amount for these types of settlements because the amount is dependent on various factors including: the nature of the injury, the amount of time the injury is expected to last, whose negligence led to the accident and the economic damages caused to the injured party. Economic damages may include, but are not limited to, lost wages, medical bills, and the opportunity costs of being healthy. General damages for such settlements include pain, suffering and distress.

Incredible Benefits

Tax-Free

IRS Code 104(a)(2) stipulates that periodic payments in the form of a structured settlement are 100% tax-free

Guaranteed Payments

The schedule of payments is determined at the front end of the transaction, resulting in a steady source of safe, reliable income for the claimant.

Rate of Return

With a locked-in rate of return, injured claimants can rest assured that market volatility will not affect their structured settlement payments.

As far as taxation, any damages caused by the injury are excluded for tax purposes (tax-free) and only punitive damages are taxable.

Punitive damages are meant to not only punish, but also to deter the defendant and others from committing similar acts as those that formed the basis of the lawsuit. The Internal Revenue Code, Section 104(a)(2), underlying that any damages received as a result of personal physical injury or physical sickness would be income tax exempt, specifically excludes punitive damages. With punitive damages being taxable, the preparation of a Structured Settlement is very critical and should be conducted by professionals to avoid IRS penalties.

At Vega Settlement Group, we ensure that our financial consulting allows for the Personal Injury Structured Settlement to provide tax benefits as well as future income for our clients.

Take the next step.

We specialize in offering our clients the confidence that only long-term planning can provide.