Family law settlements create many challenges for all parties involved. A great amount of comfort can be assured using structures to create future guaranteed payments.
Guaranteed payments can start right away to insure obligations such as child support, alimony, or just a set monthly payment stream guaranteed to assure safe comfortable living expenses can be handled.
For families that may want to set aside assets for minor children, structures can provide that as well without the need for a Guardianship, Trust, or the expenses and reporting requirements associated with them.
In most cases all payments will earn tax free interest as long as the documents outlining the settlement are handled correctly and conform to IRS Sec. 1041 which is our forte!
In the case of Alimony the deduction is retained for the payor and reporting for the payee would remain as well. In some case this is a tool in itself for clients in higher tax brackets to adjust settlement to take advantage of tax breaks.
In cases with handicapped children Special Needs Trusts can be funded with structures as well in order to preserve government benefits and family assets. Something the advisors at LRG are well experienced in handling.