Article 2.3 Transfers of Structured Settlement Payment Rights
Tax Liability to Whom? Stepping into the Shoes of the Third Party Beneficiary
California Insurance Code says if your the person “stepping into the shoes of the third party beneficiary” (assignee), you share the tax liability, if any, with the transfer company and you both are liable to the structured settlement obligor, and to the annuity issuer, if the transfer does not comply with California Insurance Code 10134-10139.5 OR if the transfer company and the assignee individually or both are noncompliant.
10139.3(d) states, “The transferee and any assignee shall be liable to the structured settlement obligor and the annuity issuer for any and all taxes incurred as a consequence of the transfer or as a consequence of any failure of the transferee or assignee to comply with this article or the terms of the structured settlement agreement.”
Talk to a broker today. Get the facts. Follow the rules. Talk to someone in the know.
Independent professional advise pertains to the seller and the private investors, and the structured settlement protection acts are designed as consumer protection laws to protect the individuals from the larger corporations known as factoring companies.
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