Skip to main content

Structured Settlement Annuity Non-Qualified Assignment 1

What is a Non-Qualified Assignment? 

The Non-Qualified Assignment (NQA) product is designed to accept the transfer of a periodic payment obligation for cases that fall outside of personal physical injury claims and litigation as defined under IRC Section 104(a)(2) and are not eligible for an IRC Section 130 qualified assignment.  Below is one example of how a NQA could be used to resolve an Attorney Fee Contract Dispute.

Case Study: Contract Dispute


John, a city bus driver, fails to fully stop at an intersection and collides with another vehicle.

The collision was minor, however, there were 20 passengers who incurred minor injuries. Seven of the injured passengers are represented by Attorney Heather Towne; the remaining 13 are represented by Attorney Richard Wright.

During the mediation, Wright disputes the initial plan of a 50/50 allocation split for their attorney fees. Further, both attorneys differ on how they prefer their individual fees be disbursed: Attorney Wright wants to structure his fees, while Attorney Towne has decided that a lump sum will best suit her needs.


There is a two-part settlement.

1. Injury Settlement

The bus company and the 20 claimants agree to settle for $200,000. To resolve its own suit with the injured passengers and the allocation dispute amongst the attorneys, the bus company issues the total $200,000 to Attorney Towne who will be responsible for distributing the funds to each claimant. All claimants opt to receive their settlement awardsin cash.

2. Attorney Contract Dispute

Then, the attorneys settle their own dispute by executing a separate settlement agreement with Attorney Towne now acting as the defendant and Attorney Wright, the claimant.


Both attorneys ultimately agree on the 65/35 allocation split of attorney fees. Towne takes her portion of the fees in upfront cash. Afterwards, Towne uses the remaining settlement proceeds that were originally allocated to Wright for his portion of the fees to fund an NQA that will issue annual payments to Wright over the next ten years.

Why NQA?

Consistent cash flow with a trusted, highly rated carrier: Winning a settlement can make a difference in an attorney’s life and business. By agreeing with Towne to purchase an NQA annuity through Met Tower Life, Wright will receive a steady stream of income immune to market volatility. This will help support his business for years beyond the settlement.

For 20 years we have been Michigan's premier and ONLY Plaintiff Focused Structured Settlement Consultant. 

Please contact us early at (734) 433-1670 or and let us help you and your clients maximize your hard earned settlement dollars call!


Popular posts from this blog


Structured Settlements in A Low Interest Rate Environment

We often hear from our plaintiff attorney clients that their clients should not use a structured settlement annuity due to the current low interest rate environment. Their thought is that their clients can do better in other financial instruments such as the stock market. This logic fails to take into the consideration one of the best features of a structured settlement annuity which is its income tax FREE GUARANTEED payments. I am a financial adviser and Certified Financial Planner with over 20 years of experience who can advise clients regarding ALL financial options and not simply limited to Structured Settlement Annuities. I have witnessed MANY high and low interest rate environments and MANY claimants who were going to "get a higher rate of return" outside of a structured settlement annuity who are now OUT OF MONEY! Remember, it doesn't matter what rate of return you are getting if the balance of your investments is ZERO! But don't just take my word for i

Thomas Bond Benefits of Structured Settlement Video

Please watch this excellent video where e xperienced and successful personal injury attorney, Thomas M. Bond from the firm of Kaplan/Bond in Boston tells you why a structured settlement is the best choice for the longterm financial security for you and your family when your lawsuit settles for a large sum. Hear how one man made the wrong choice and tragically lost everything.