Applicable Federal Rate
The federal interest rate used to compute the present value of future income streams (see Discount Rate). Published monthly by the IRS for federal income tax purposes. These rates are used to calculate assigned interest charges.
A person who receives annuity payments
A benefit of life insurance policies that provides policyholders with a specific stream of payments that is paid out over a specific time period during the lifetime of the policyholder.
Guaranteed periodic payments
An agreement between annuitant and the issuer establishing the terms of the annuity
The company who pays the annuitant according to the terms of the annuity.
The company responsible for paying the annuitant in the event that the annuity issuer is unable to do so.
Annuity Start Date
The date that payments are set to begin
The legal transfer of one party’s structured settlement payments to another party
The person named to receive annuity payments in the event of the annuitant’s death
Documentation from an insurance company that states what payment streams are available
Best Interest Standard
The standard used by a judge in determining if selling structured settlement payments should be approved.
A letter from the insurance company that says they have received the court order and will comply.
An official order by a judge that authorizes the structured settlement transfer
Payment made to the beneficiary from an annuity when the policy holder dies.
The interest rate used to compute the present value of future income streams
An annuity that doesn’t start payments immediately, but rather pays installments or a lump sum in the future
A person relying on another person for financial aid or support
The document required to be provided by the company purchasing structured settlement payments which lists the dates and amounts of the payments to be sold, the amount to be paid for those payments along with additional disclosures. The disclosure statement should be provided prior to receiving a transfer agreement.
A legal decree that terminates a marriage that establishes the new relations between the parties, including their duties and obligations relating to property, support responsibilities and provisions for any children.
The net worth of a person at any given time. In the context of probate, the estate of the deceased person consists of all the property owned by the person at the time of death.
Federal Tax Liens
A claim imposed by the I.R.S. for failure to pay Federal taxes
An annuity in which the issuer makes the same payment to the annuitant over a defined period of time
Guaranteed Structured Settlement Payments
Payments that will be paid even if the annuitant is deceased
Independent Professional Advice
Legal, Tax, and Financial Advice that some statutes require annuitants to get before selling structured settlement payments. Indepedent professional advice is a good ideal for anyone interested in selling their payments.
The official power of a court to make legal decisions. Typically the court that will oversee the transfer of structured settlement payments.
Structured Settlement or annuity payments that will only be paid if the annuitant is alive.
Lump Sum Payment
A single payment of money, as opposed to a series of payments made over time – such as a structured settlement or annuity
Net Present Value
The current value of an annuity payment(s)
A person with legal training who is licensed by the government to perform acts in legal affairs, in particular witnessing signatures on documents .
The value of an asset after all debts and expenses have been paid
To certify a document
Person to whom money is paid
Payments that are received regularly on either a monthly, quarterly basis, or semi-annual basis
Harm to the body, mind or emotions
Power of Attorney
Written authorization to represent or act on another’s behalf
The amount that the annuitant will receive in exchange for future structured settlement payments
The company who has agreed to buy annuity or structured settlement payments
The estimated price that a purchasing company will pay for structured settlement payments
State Tax Lien
A claim imposed by the state for failure to pay a state tax
The law that structured settlement transactions must follow. These vary from state to state.
The document between you, Mainstreet, and the insurance company that shows that all parties agree to the transaction
A way to resolve lawsuits by providing payments structured to be paid over a period of time. This form of settlement is designed to provide income over time instead of as one lump sum. Structured settlements, once setup cannot be changed. The payments must come on the due dates and in the amounts determined up front.
Structured Settlement Agreement
An agreement that stipulates the terms of a settlement, such as when the payments will be made along with who is making the payments. This agreement typically sets for the release of the defendant in exchange for the payments.
The one that has responsibility for making payments under a settlement agreement, usually an insurance company.
The contract between Mainstreet and you that shows provides the terms for selling structured settlement payments.
A wrongful act that results in injury to another’s property, person, reputation and for which the injured party is entitled to compensation
The mandatory time period required by the rules for selling structured settlement payments that you must wait before you can sign a transfer agreement. This is so that you can research the purchasing company, make sure you’ve been given the best deal, and ask any questions you might have before signing a transfer agreement.
Compensation from the result of injury on the job
Death from the result of negligence or wrongdoing of another