Solutions
As an attorney, lawsuit claimant, or property seller who may become entitled to a lump sum payment, for financial planning and tax reasons, you may prefer to receive a series of periodic payments over time. Where this is the case, you can agree with the party who is required to make the payment (payor), like a settlement fund administrator, lawsuit defendant, insurer or seller, the amounts and payment dates for the periodic payments.
Both you and the payor likely will prefer to have an assignment company assume the obligation to make the periodic payments to you. From your perspective, this substitutes the low credit risk of the assignment company for the potentially more substantial credit risk of the payor. From the payor’s perspective, it eliminates the burden of administering the payments and allows the payor to clear the obligation from its books.
Consequently, the payor will:
- make un upfront payment to the assignment company representing the value of the periodic payments owed to you; and
- assign the obligation to make the periodic payments to the assignment company, which will then be responsible for making the periodic payments to you.
What we do
Depending upon advice you receive from your own tax, legal and financial advisors, DAC may create a new segregated portfolio (SP) to assume the payor’s obligation to make the periodic payments to you.
The payor will assign to the DAC SP the obligation to make periodic payments and pay it a lump sum of cash to fund the periodic payments. The DAC SP will use the cash to purchase investment assets from which to make future periodic payments.
You must choose an investment policy suitable to your long terms needs and investment goals as well as a suitable benchmark with which to monitor the performance of the investment portfolio over the long term. Once the investment policy has been chosen and reflected into an investment policy statement (“IPS”) you can choose to have the cash invested in a:
- customized investment portfolio managed by your chosen investment advisor utilizing one of Dominion Switzerland’s core custodians (Schwab, Fidelity, and other leading custodians);
- customized investment portfolio managed by a bank chosen by you;
- commercial annuity contract;
- private placement variable annuity contract with an underlying investment portfolio managed by your chosen investment advisor; or
- model fixed income portfolio constructed by Dominion.
Unless the cash has been invested into a commercial annuity contract, Dominion Switzerland will monitor the investment performance on a quarterly basis against the benchmark that has been selected. Dominion Switzerland will provide statements to you every quarter, and where requested, provide commentary regarding the performance of the investment portfolio. DAC via Dominion Switzerland will be responsible for making payments to you according to the periodic payment plan.
DAC provides assignment company solutions for deferred attorney fees, structured installment sales and structured settlements.
DAC provides assignment company solutions for;
Structured Settlements for Taxable Damages
Structured Settlements for Tax-Free Damages
Structured Installment Sales