RCYC members who attended included Insurance broker and Pres.of STRUCTURED SETTLEMENTS GTOUP INC.(1933). Provides to the mentally & physically injured .an annuity:from the settlement tax-free and creditor-proof.. Douglas J. MITCHELL BA(UWO-1972) www.structures.ca
When client dies annuity can betransferred to spouse or a payment to Estate depending on age.
(Comment: Stats Can. 46% Canadians are FUNCTIONALLY ILLITERATE.)
FROM D.MITCHELL BA
The only revision ... is that the person has to be mentally or physically
injured by the WRONGFUL act of someone else; who has an obligation to
compensate the victim.
Examples are Car Accidents, Medical Malpractice, some Sports Injuries, Sex Abuse, Wrongful Imprisonment.
The tax-free creditor-proof annuity MUST be arranged during the settlement of the lawsuit, not by the claimant afterward.
The Canada Revenue Agency allowance for this is based upon the
victim and the defendant ( by their insurance company ) agree on a
series of payments. Their insurance company buys an annuity to fulfill
the payment schedule, and IRREVOCABLY directs the Annuity company to
make all payments directly to the Victim, while all tax notices on the
accumulating interest go to the original purchaser ( for example, the
car insurance company)
The ONLY Life Insurance Companies issuing these special annuities
are a few Canada's largest and most stable: Canada Life, Manulife etc.
A government monitored industry fund guarantees every payment, and
in 150 years has NEVER been called upon to fulfill a missed payment.
The original Defendant Insurance Company also guarantees every
payment even though they paid the full cost of the annuity during the
settlement.
CRA Bulletin #365 R2 is an enabling document for those who wish to read about it.
On late night USA television you may have seen commercials about
cashing in Structured Settlements. That is only possible in the case
of USA issued Structured Settlements where the law was poorly written.
Canadian Structured Settlements cannot be sold, cashed, pledged,
garnisheed, changed, or lost in any way.
