Litigation

Pressman Settlements Corporation Continues to Be All FAQd Up!

By John Darer

How FAQ'd Up is Pressman Settlements Corporation? Let Me Count The Ways!

1. States that structured settlement payments are funded by either a life insurance company annuity or US Treasury Bond and then states they are funded by multi-billion dollar life insurance companies with strong financial ratings from AM Best, Fitch, S&P, Moodys and Weiss. (1)Life insurance companies do not issue US treasury bonds and (2)Weiss Research was acquired by The Street.com quite some time ago.

2. Continues to fail to differentiate between the income tax and estate tax treatment of structured settlements.

3. States it offers proven expertise in tax-free annuity income planning again ignoring estate tax ramifications.

4. Misrepresents that "there are no tax returns while the claimant is still a minor". If the minor dies while a structurred settlement annuitant AND there is a substantial remaining guaranteed payout, estate taxes may be due and an estate tax return will be required.

5. Continues to make an irresponsible explanation of what a rated age is by stating "receiving a rated age does not mean you will die early. It means only that the life insurer is willing to treat you more favorably for lifetime quotations. When you ?outlive? expert predictions, your structure continues to provide guaranteed tax-free income. No other investment allows you to earn more income because of your medical condition" The fact is that a rated age is given because of an assessment that the tort victim has a shorter than normal life expectancy. When comparing investment alternatives consumers should insist on an IRR calculation that takes into account the tort victim living to the end of the guarantee or certain period on the annuity AND various hypothetical "if live to" dates.

Perhaps Elizabeth Pressman should heed her own mantra that "there is no room for guess work when so much is at stake".

Recommended Reading

Rated Ages and Impaired Risk Ratings

Structured Settlement IRR-Fact or Fiction?

Structured Settlements 4Real prior posts on the same subject with relation to Pressman Settlements Corporation stemming back over one year

Full post as published by Structured Settlements 4Real on November 02, 2008 (boomark / email).