What is a qualified assignment under IRC § 130 and how does it affect my settlement?

What is a qualified assignment under IRC § 130 and how does it affect my settlement?

When a defendant settles a case with a structured settlement, they typically ‘assign’ the obligation to make payments to a third-party assignment company, which then purchases an annuity from a life insurance company to fund the payments. This is a qualified assignment under IRC § 130. It releases the original defendant from the payment obligation while ensuring you receive your payments from a financially secure annuity issuer. The assignment company assumes all payment obligations.