Keeping her own advisor inside a tax-free structure

CASE STUDY DETAILS

A plan built around the client's own advisor

A plaintiff resolved a personal injury claim after a serious workplace accident. Early on, she and her long-time financial advisor agreed that an annuity for the full award was not the right fit. She wanted her advisor to manage most of the funds while still capturing the tax advantages of a structured settlement.

The challenge was bringing an advisor-managed account into the settlement instead of leaving those assets in an outside taxable account. The plan needed to cover her immediate needs, with her advisor managing the balance and preserving tax-free growth.

Designing the structure

An annuity and cash covered her immediate needs. She also placed $1 million into Settlements Plus, managed by her advisor. In 20 years, the account pays a lump sum equal to 50% of the account's growth, with the remainder paid out pro rata quarterly over the following 44 years.

Why Settlements Plus+ fit

Through Settlements Plus, she kept her trusted advisor while bringing managed assets inside the settlement. Unlike a taxable investment account, the structure preserves tax-free growth on principal and gains, with a distribution schedule built around her life rather than a fixed formula. The open architecture meant her advisor, not a preset menu, directed the investments.

Delivering lasting value

This plan started as cash and an annuity, with the balance headed for an outside investment account. Once the advisor relationship was introduced, Settlements Plus moved those assets into a tax-advantaged structure with a customized distribution schedule.

This is a hypothetical scenario created for illustrative and educational purposes. It does not describe an identifiable claimant or actual client results. Investment projections are hypothetical and are not guarantees of future performance. Market-based investments involve risk, including potential loss. Tax treatment depends on the nature of the underlying claim and the terms of the arrangement.

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Feel Connected

Imagine what we

could do together.

Prospera Market Strategies create market-based structures that turn simple settlements into meangful legacies.

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Feel Connected

Imagine what we

could do together.

Prospera Market Strategies creates market-based structures that turn simple settlements into meangful legacies.

LET'S MEET