Structured Settlements
Court-approved, non-market-correlated income streams for qualified investors.
RM Legacy Group provides qualified investors with access to structured settlement payment rights — the court-approved right to receive specific future payments originating from legal settlements, including personal-injury, medical-malpractice, wrongful-death, or other liability cases.
These transfers occur strictly under state Structured Settlement Protection Acts (SSPAs) and are validated by judicial order. The resulting payment streams operate independently of market fluctuations and are defined by the court-approved schedule and obligor performance.
Structured-settlement payment rights are not insured or guaranteed by RM Legacy Group, any government, or any insurance carrier.
RM Legacy Group’s Role
What a Structured Settlement Is and What Investors Actually Buy
Structured settlements are periodic-payment arrangements created when a defendant or its insurer resolves a legal claim by agreeing to make future payments over time. In most cases, the defendant assigns the payment obligation to a special-purpose assignee, which funds the stream through a life annuity issued by a U.S. life insurance carrier or, in certain cases, through U.S. Treasury obligations.
When an investor acquires structured settlement payment rights, they are purchasing the right to receive those court-ordered payments directly. The payment schedule is fixed by judicial order, the obligor is typically an A-rated insurance carrier, and the income stream operates entirely outside of market conditions.
What makes this asset class compelling is precisely what makes it rare. The return is not a projection. It is a schedule, defined at acquisition, validated by a court, and backed by an obligation that predates the investment itself.
Why Investors Consider Structured Settlement Payment Rights
Defined Cash Flows:
Payment schedules are established by judicial order and remain fixed regardless of market conditions, interest rate movements, or economic cycles. What you are owed is precisely what the court has ordered.
Low Market Correlation
Payment performance depends entirely on obligor solvency, not equity valuations, bond spreads, or market sentiment. When markets move, these payment streams do not.
Yield Potential
Payments are typically acquired at a discount to their present value, creating yield potential that frequently exceeds traditional fixed income instruments of comparable duration, without the associated market risk.
Diversification
Structured settlement payment rights introduce a predictable, non-market-correlated income stream into a broader portfolio, one backed by court order rather than corporate performance or government policy.
Comparison: Structured Settlements vs. Traditional Fixed Income
Attribute | Structured Settlement Payment Rights | Bonds / Treasuries |
|---|---|---|
Cash-Flow Certainty | Fixed by judicial order, subject to obligor solvency | Coupon and principal subject to reinvestment and credit risk |
Market Correlation | Very low, driven by obligor performance not market conditions | Moderate to high, sensitive to rate cycles and credit spreads |
Yield Potential | Typically acquired at a discount, creating above-market yield potential | Curve and spread dependent, compressed in low-rate environments |
Liquidity | Illiquid, structured as a hold-to-maturity investment | High, traded on secondary markets |
Issuer/Payor | Named in court order, typically an A-rated life insurance carrier | Government entity or corporate issuer |
Frequently Asked Questions
Who pays me?
Payments are made by the obligor named in the court order, typically an A-rated U.S. life insurance carrier that assumed the payment obligation at the time of the original settlement. Your payment stream is not dependent on the original plaintiff, defendant, or any third party. It flows directly from an institutional-grade source, on a fixed schedule, validated by judicial order.
Are payments guaranteed by the government or RM Legacy Group?
Payments are not guaranteed by any government agency or by RM Legacy Group. What backs your investment is the financial strength of the obligor, typically one of the most established life insurance carriers in the United States, combined with the legal enforceability of a court-approved payment order. We carefully vet every obligor and every case before it reaches our investors.
Are payments tax-free?
For investors, structured settlement payments are taxable. Tax-free treatment under IRC §104 applies exclusively to the original claimant, not to subsequent purchasers of the payment rights. Tax treatment for investors will vary depending on your ownership structure, applicable federal and state law, and the specific characteristics of each case.
We strongly encourage every investor to consult with a qualified tax advisor to understand the full implications for their situation. Our team is happy to facilitate that conversation and connect you with the right professionals.
Can I sell before maturity?
Structured settlement payment rights are designed as hold-to-maturity investments and there is no established secondary market for resale. That said, if your circumstances change down the line, RM Legacy Group can work with you to explore available options. Our network and relationships within the industry put us in the best possible position to help you navigate a private sale if and when that need arises.
Can all settlements be transferred?
Not all payment streams are eligible for transfer. Certain payments, including some workers’ compensation benefits, may be non-transferable under applicable state law. Every opportunity presented through RM Legacy Group has already been reviewed for transferability and court-approval eligibility before it reaches an investor. You will only ever see opportunities that have cleared that threshold.
Disclaimer: Structured settlement payment rights are not insured or guaranteed by RM Legacy Group, any government agency, or any insurance carrier. All transactions are subject to applicable state Structured Settlement Protection Acts and require court approval. Payment performance depends on obligor solvency. This material is for informational purposes only and does not constitute legal, tax, or investment advice. RM Legacy Group acts exclusively as an independent intermediary. Investors are encouraged to consult qualified legal and financial advisors before making any investment decision. All programs are structured and administered in full compliance with applicable state regulations.