Qualified Assignments

Section 130(c) of the IRC sets forth specific conditions to be met in order for the liability assignment to retain its "qualified" or tax exempt status.

• Periodic payments must be fixed and determinable as to amount and time of payment;
• Such periodic payments cannot be accelerated, deferred, increased, or decreased by the recipient of such payments;
• The assignee does not provide to the recipient of such payments rights against the assignee which are greater than those of a general creditor;
• The assignee's obligation on account of the personal injuries or sickness is no greater than the obligation of the person or company assigning the liability; and
• Such periodic payments are eligible for exclusion from the gross income of the recipient under IRC Section 104(a)(2)