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Showing posts from June, 2017

Title IX Cases and Structured Settlements

Perhaps g iven possible changes in federal enforcement of Title IX and the Clery Act under the Trump Administration we have been seeing a lot of activity in these types of cases.   Title IX of the Education Amendments of 1972 protects people from discrimination based on sex in education programs or activities which receive federal financial assistance. Many of these cases involve minors so the use of Structured Settlements is often discussed and used to settle these cases. We find that even in the cases of sexual abuse cases that many attorneys are not aware that most of these cases are "non-qualified" type cases.  This means that most of them do not qualify under Internal Revenue Code (IRC) 104(a)(2), which makes the interest accrued in structured settlements income tax free in the case of physical injury damages.  If there were physical injuries as well then the entire structured settlement, including interest would be income tax free.  However, this is a VERY gray are