Structured Sales

With a Structured Sale, our clients may qualify for the tax advantage of capital gains deferment—with future payments guaranteed by a highly rated Fortune 100 life insurance company.

What is a Structured Sale?

A Structured Sale lets sellers of qualifying businesses or real estate improve the sale of their property or business by deferring taxes. It offers all the advantages of an Installment Sale—without the security risk that makes an Installment Sale unattractive.

A Structured Sale allows the seller to receive future payments when they want, and at intervals they decide are best for them. Internal Revenue Code Section 453 and various Revenue Rulings permit sellers to defer taxes on all or any portion of their sale proceeds.

Advantages of a Structured Sale

Until now, Sellers had limited options to cashing out and deferring taxes, and the previous options included solvency risk and tax implications. A Structured Sale provides a solution to this risk, by utilizing a specially designed assignment process that places future payment obligation on an A+ rated life insurance company through the use of a fixed annuity.

Here are the advantages of a Structured Sale over traditional options:

Security and Flexibility

A Structured Sale is a customized solution that lets the seller begin receiving payments when they want and at intervals that meet their needs. A Structured Sale allows the Seller to defer receipt of payment. This provides a greater opportunity to create retirement income or a nest egg for future events, such as children's education expenses.

Lifetime Payments

In addition to periodic payments, Structured Sale payments can be set up to provide guaranteed, lifetime income, so the recipient cannot outlive the proceeds of the sale.

Tax-Deferring Alternative to 1031 Exchanges and Installment Sales

A Structured Sale offers a secure alternative and provides guaranteed, tax-deferred future payments from the proceeds of the sale. Since income deferral is fundamental to almost every tax-planning strategy, a Structured Sale offers unique advantages that are otherwise unavailable to buyers and sellers of qualifying property.

How a Structured Sale Works

Here's an example of how a Structured Sale works:

A Seller has an income-producing property that she bought for $200,000 15 years ago. The mortgage is paid and the property is worth $1,500,000. The Seller wants to retire and, therefore, not engage in a 1031 exchange, so her real estate broker suggests a Structured Sale.

The $1,500,000 sale solution could include the following:

Cash (including Realtor's commissions) at close of escrow for $700,000.
Instead of giving $800,000 cash to the Seller, the Buyer purchases an annuity costing $800,000 through a licensed broker with the credentials to effectuate a Structured Sale. The annuity will provide the Buyer with $4,150 per month for life (20 years guaranteed), netting the Seller $1,548,850 over her lifetime. Each payment is secured by a major life insurance company rated A+ or better by A.M. Best and includes non-taxable recovery of investment, taxable gain and interest.
There are no hidden fees. No trust needs to be established and no money management fees are charged.

Why FSS?

Client-Focused

Financial Settlement Services (FSS) works as an advocate to the process. We take a life-management approach, creating security and peace of mind for our clients.

Experience

Our Structured Settlement Consultants have an average of 10 years in the industry and are experts in understanding your unique financial needs. As a result, our Consultants use a personalized, proactive and interactive approach to achieve the greatest benefits and financial security of each client.

Best-In-Class Service

Our reputation for service is second to none. Our large support staff allows us to quickly and accurately prepare and submit the required documents, allowing us to deliver exceptional service even on the backend of your experience.

Financial Strength

We work with only highly rated life insurance companies to ensure financial dependability.

Financial Settlement Services is a division of Nationwide Mutual Insurance Company. The information is not intended to provide legal or tax advice. Due to various tax codes and regulations, you should always seek independent legal and tax advice.