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Estate Commutation
Estate Commutation

In many large settlements, the plaintiff’s structured settlement guarantee (“present value” at death) will exceed millions. To circumvent tax dilemmas for these large estates, life insurance companies in the structured settlement industry offer an Estate Commutation Rider through the annuity contract, with a guarantee period, for no additional charge.

The Estate Commutation Rider provides a provision whereby, upon the death of the annuitant, the life insurance company will commute all or a percentage of the present value of the remaining guaranteed annuity payments to a beneficiary in one lump sum to pay for the annuitant’s state tax liability.

Learn more by contacting ROBINYOUNG & COMPANY.

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