Transcript St James Assurance Corporation

St James Assignment Corporation
Structured Settlements Assignment
Program
Assignment obligations are backed by Annuities from
St. James Assurance Corporation, a Barbados QIC
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Structured Settlements Assignment
Program Overview
Step 1
Step 3
QSF/Defendant/Insurer assigns obligation for
periodic payments due to Attorney/plaintiff, to
the Assignment Company.
Asset provider (Annuity company) provides funding
asset and makes payments when due to either the
Assignment company that owns the asset or, on
direction of the Assignment Co, makes payment
directly to the Attorney.
Step 2
Assignment Company accepts assignment for future
periodic payments obligation and purchases a funding
asset (annuity) to match obligation.
Step 4
Asset provider invests in desired risk
portfolio instruments as set out in the
Settlement Agreement and
Assignment Agreement governing
the fees and assignment.
Step 5
Attorney/Plaintiff receives periodic payments when due from either:
-the Assignment Company or;
-the asset provider on the direction of the assignment company.
-Tax reporting for the amounts received on IRC 1099 MISC follows annually from remitter, asset
provider or the assignment company.
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Types of Cases Accepted
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Discrimination
Contract Disputes
Non-Physical Injuries
Punitive Damage
Sexual Harassment
Civil Rights Violation
Environmental Litigation
Legal Malpractice
Construction Defects
Divorce (Child Support & Property Division)
Property Disputes
Attorney Fees on IRC S104 qualified cases
Note:
The underlying criteria for accepting a case is the evidence of a dispute. If
you have a case that falls outside of those above, please call us to discuss.
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Annuity Underwriting
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Choice of Fixed Income or Variable Annuity
Minimum Premium is $2M
Maximum annuity term – 25 years
Minimum deferral – 5 years
Earliest 1st payment – year 6
Only annual lump sums
Special language required in Settlement Agreement for fixed
or variable annuity payouts
Beneficiary Designation allowed
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Annuity Investing
St James can arrange suitable investments through a leading investment bank
and full service investment firm which is familiar with the proposed
arrangement, or, if preferred, through a suitable investment firm with
whom the attorney has an existing relationship.
• Variable Annuity
– customized to suit the risk tolerance of the client, using mixes of
low risk and equities instruments determined by settlement agreement
and risk profile of payee.
• Fixed Income Annuity
– can be customized also.
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Security of Investment
 Premiums are invested by a leading investment bank and full service investment
firm in the US.
 Funds never leave the US.
 Premium is deposited into SJ Assignment’s account with the investment bank, then
transferred to SJ Assurance’s account, also with the investment bank. In both
Assignment and Assurance the transactions are maintained in separate accounts
specific to that case and policy, as per the assignment and annuity contracts.
 Investments are designated by the investment bank as St. James Assurance for the
benefit of each specific policy or account.
 Payouts are made directly from investment bank to annuitant.
 All funds or investment assets are protected and preserved at all times by separate
account legislation that governs both Assignment and Assurance.
 Assurance is regulated by the Supervisor of Insurance of Barbados.
Copyright 2010
St James Assignment Corporation
www.stjames.bb
‘Separate Account’ Legislation
 The Barbados Companies Act provides for companies to be formed and registered
as ‘separate account’ companies, whereby the assets and liabilities of each account
are segregated one from the other, and from the assets and liabilities of the core
company.
 As a result, investments held by separate account companies in separate accounts
for designated individual annuity/insurance contracts are protected from general
creditors of the company, as well as from claims against another account.
 Both St James Assignment Corporation and St James Assurance Corporation are
separate account companies.
 St James Assurance Corporation is also a Qualified Insurance Company (QIC) and
files audited Financial Statements with the Supervisor of Insurance annually.
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Document Requirements
 Assignment and Release Agreement
 Settlement Agreement
 IRS W-9
 Hold Harmless Agreement (for Attorney Fees)
 Trust Agreement (if applicable)
 Court Order (if applicable)
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Tax Reporting
 The full amount of all benefit payments will be reported via an
IRS 1099MISC annually to the annuitant, as they are made
for all cases except Divorce - Property Division and Child
Support.
 For Divorce Cases – Property Division and Child Support,
only the interest / gain above the premium invested will be
reported annually via an IRS 1099MISC, when the payments
are made to the payee.
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Benefits of the Program
 Investment of pre-taxed dollars
Tax deferral until payments are received
Flexibility
Asset protection
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Dollars and Sense
Copyright 2010
St James Assignment Corporation
www.stjames.bb
Power of Deferral
Cash Upfront v/s Deferral Returns
8,000,000
7,000,000
6,000,000
Dollar
5,000,000
Cash Upfront
4,000,000
Deferral
3,000,000
2,000,000
1,000,000
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Year
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St James Assignment Corporation
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