Structured Settlements by Patrick Farber

Call Directions Website Contact the business

Structured Settlements by Patrick Farber Structured settlement & annuity advice for parties who must make their settlement last a lifetime. Patrick C. Government notes.

Farber - Pat Farber has 35 years of insurance experience with more than 30 years in the structured settlement field. Pat specializes in providing structured annuities for medical malpractice, personal injury, product liability, workers’ compensation, toxic torts, and construction defect cases as well as for non-physical injury cases and attorney fees. He participates in court hearings, arbitrations and settlement conferences throughout California, the West Coast and in other areas of the United States. He has personally placed over $3.5 billion in annuity premiums and U.S.

Fixed mortgage rates are now above 7%. More people are being priced out of the housing market or turning to riskier adju...
09/29/2026

Fixed mortgage rates are now above 7%. More people are being priced out of the housing market or turning to riskier adjustable-rate mortgages.

Personal injury clients are in a unique position. They can use structured settlement proceeds to buy a new home and take advantage of two tax benefits.

How the Dual Tax Advantage Works

First, income payments generated from a personal injury structured settlement are 100% tax-free under IRS Code Section 104(a)(2).

Second, the interest paid on a primary mortgage throughout the year can still be claimed as an itemized tax deduction on federal returns using IRS Form 1098.

Dual Tax Advantage: A Real-World Example

A personal injury client nets a $1,405,707 settlement. He wants to buy a home in a nice area with good schools. Even with a $500,000 down payment from the settlement, he still can’t afford the high mortgage payments.

One option is for him to make the $500,000 down payment on the home and structure the remaining $905,707 in settlement proceeds to generate $5,000 per month in tax-free payments over the 30 years (internal rate of return: 5.36%). The money can then go towards the monthly mortgage payment for the life of the loan.

At the end of each year, the client’s mortgage lender provides an IRS 1098 tax form showing the amount of interest paid by the borrower. That amount is considered an itemized tax deduction on the client’s federal income taxes.

The client pays the mortgage with tax-free structured settlement proceeds and can then deduct the mortgage interest on his taxes. The deduction can be substantial and can significantly reduce the client’s overall tax liability.

Please feel free to visit the full post on our website or contact us to discuss mortgage-related and other structured settlement options.

Full Post: https://patrickfarber.com/structured-settlements-alert/home-buying-with-structured-settlement-proceeds/

Nick Schuetze | Structured Settlement Specialist
Patrick Farber | Structured Settlment Broker

We are proud to be a sponsor for the Consumer Attorneys of California’s 2026 Class Action Seminar in Newport Beach this ...
09/21/2026

We are proud to be a sponsor for the Consumer Attorneys of California’s 2026 Class Action Seminar in Newport Beach this Thursday, September 24.

If you plan to attend, let’s meet to discuss ways we can assist in increasing tax-free and non-qualified class action settlement amounts for your clients, and options available for structuring attorney fees.

For more information about the seminar, click below.
https://www.caoc.org/?pg=events&evAction=showDetail&eid=346496

As always, feel free to contact us with any questions about the available options for structuring client settlements and attorney fees.

See you there!

Nick Schuetze
& Patrick Farber
Contact us: https://patrickfarber.com/contact/

MetLife has published a white paper that provides an excellent overview of non-qualified assignments (NQAs) when structu...
09/21/2026

MetLife has published a white paper that provides an excellent overview of non-qualified assignments (NQAs) when structuring a settlement. While the white paper uses employment litigation in its discussion, the benefits it outlines can apply to any other non-qualified case.

The white paper highlights:
-Fundamentals of NQAs and how they work
-How NQAs help with settlement tax planning
-Creating guaranteed income over time that meets claimants’ needs
-How NQAs protect settlement proceeds from market volatility

The bottom line: NQAs can help clients:
-Manage settlement proceeds distribution
-Spread out their tax obligation while the settlement funds earn tax-deferred interest within the structured annuity
-Receive guaranteed income regardless of market fluctuations

Non-qualified structures can also be created for attorney legal fees.

Read the white paper here. >https://www.metlife.com/retirement-and-income-solutions/insights/structuring-an-employment-settlement-a-tax-efficient-solution/

Please feel free to contact us to discuss NQAs and structured settlement options available in the marketplace.

Nick Schuetze
& Patrick Farber
Contact us: https://patrickfarber.com/contact/

MetLife’s Non-Qualified Flex Agreement (NQA-FA) is now available. First announced in April, this settlement option uses ...
09/21/2026

MetLife’s Non-Qualified Flex Agreement (NQA-FA) is now available. First announced in April, this settlement option uses a funding agreement instead of a traditional annuity–giving non-injury claimants the ability to defer payments longer than the IRS Code’s one-year maximum.

Besides a more attractive deferred payment start date, a NQA-FA also provides:

-Greater flexibility on when lump sum benefits are paid,
-Annual payment increases
-Customized payment schedules based on the claimant’s needs.

As with MetLife’s other settlement products, payment obligations under an NQA-FA are transferred to MetLife’s Assignment Company, with payments taxable once received by the claimant.

These products are gaining traction in cases involving employment litigation, contract disputes, construction defects, property and environmental claims, punitive damages and other non-injury matters. More claimants want guaranteed income over long periods–without giving up the flexibility to manage payments and tax obligations.

Please feel free to contact us to discuss the variety of structured settlement options available in the marketplace.

Nick Schuetze & Pat Farber
Contact us: https://patrickfarber.com/contact/

Factory job cuts are at their highest level since the 2009 financial crisis, according to an S&P Global report, excludin...
06/25/2026

Factory job cuts are at their highest level since the 2009 financial crisis, according to an S&P Global report, excluding the 2020 figures at the start of COVID.

Read the Report: https://finance.yahoo.com/economy/articles/u-factory-job-cuts-worst-151956093.html

With a shaky job market, unemployment at 4.3 percent and rising consumer prices, a structured settlement that lasts a lifetime can provide a much-needed steady income stream.

Manufacturers are cutting jobs to reduce headcount amid concerns about product demand. If clients can return to work after an injury, their jobs may not be there for them.

Structured Settlements Offer Financial Security.

During an uncertain jobs environment, structured settlements continue to offer consistent, secure and safe returns for injured clients.

Clients receive pre-determined payouts from the settlement annuity regardless of economic uncertainties. An inflation component can be added so that payments rise with inflation.

During a time of job cuts and talk of AI impacting workforce numbers, structured settlements offer the security individuals need to maintain stability in their lives after an injury.

Please feel free to contact us to discuss your clients’ settlement options.

Contact: https://patrickfarber.com/contact/

More About:
Pat Farber https://patrickfarber.com/about/patrick-farber/
Nick Schuetze https://patrickfarber.com/about/nick-schuetze/

The U.S. House of Representatives passed the Survivor Justice Tax Prevention Act, H.R. 2347, a bill that would give tax-...
06/03/2026

The U.S. House of Representatives passed the Survivor Justice Tax Prevention Act, H.R. 2347, a bill that would give tax-free treatment to sexual assault settlements.

Currently, the IRS generally requires proof of physical injury before granting tax-free status to a settlement. Proving physical injuries is often difficult, so most settlements are fully taxable.

That may all change with H.R. 2347. The bill is currently in the hands of the Senate

The bill: https://www.congress.gov/bill/119th-congress/house-bill/2347/all-actions?overview=closed&s=9&r=323&hl=tax

Tax lawyer Robert W. Wood recently wrote about the bill. Use the link below read his analysis.

https://patrickfarber.com/wp-content/uploads/2026/06/Bill_Shielding_Robert_Wood.pdf

Please feel free to contact us to discuss current settlement options for sexual assault victims–Nick Schuetze and Patrick Farber.

Contact us: https://patrickfarber.com/contact/

We’re excited to share that MetLife has introduced a new product for non-qualified structured settlements. Previously, A...
06/03/2026

We’re excited to share that MetLife has introduced a new product for non-qualified structured settlements.

Previously, American General was our primary solution when deferring payments beyond the 12-month requirement for any wrongful termination case and all employment litigation. With MetLife now offering a comparable product, we have two competitive options, allowing us to compare rates and place cases more advantageously when deferral is needed.

Deferred Attorney Fees. We’re also seeing increased use of these structures by law firms. Some firms elect to be the payee, using structured payments for cash flow, overhead, or firm growth. Others choose to structure fees to spread income over time–whether for retirement, education planning, or tax efficiency, while creating a predictable income stream.

When a non-qualified case calls for deferral beyond the 12-month requirement, having multiple funding agreement options allows us to better tailor and optimize the structure.

Please feel free to contact us to discuss the options available for non-qualified structures.

https://patrickfarber.com/contact/

Pat Farber

Pacific Life has put together a quick video on its structured settlement annuity product designed for attorneys receivin...
06/03/2026

Pacific Life has put together a quick video on its structured settlement annuity product designed for attorneys receiving fees from a personal injury settlement. The video discusses a new option to help offset rising inflation.

Pacific Life’s Index-Linked Annuity Payment Adjustment rider (ILAPA). The ILAPA rider adjusts annuity payments based on the performance of the S&P Stock Market Index without downside risk. When the S&P Index goes up year-over-year, scheduled annuity payments go up. If the index declines, the annuity payments remain the same.

Check out the link below for an explanatory video and more information.

https://patrickfarber.com/structured-settlements-alert/inflation-protected-annuity-payments-for-attorney-fees/

Skyrocketing gas prices and sinking investment portfolios are taking a toll. Prices were already heading upward before t...
03/26/2026

Skyrocketing gas prices and sinking investment portfolios are taking a toll. Prices were already heading upward before the Iran war, but now, people are seeing a real hit to their pocketbooks. Those with structured settlement annuities are in a better position than others to weather the storm.

Structured settlement annuities provide guaranteed, tax-free income to injured individuals regardless of what the markets do or what’s happening overseas.

Funds within the annuity are backed by the financial strength of the issuing insurance company. These companies can only legally invest settlement funds in safe, government-backed investment vehicles, so holders know their money is secure.

Some structures include an inflation component. Annuity payments increase based on the inflation rate.

No one knows how long the current inflation and market volatility will last. For injured individuals who need to decide where to place their settlement proceeds, structured settlements are an attractive option to safeguard against current and future uncertainties.

For questions about structured settlements, please feel free to give me a call or contact me. https://patrickfarber.com/contact/










Alert

Attorneys Robert Wood and Alex Brown recently wrote an article on Qualified Settlement Funds (QSFs). Here are some of th...
03/25/2026

Attorneys Robert Wood and Alex Brown recently wrote an article on Qualified Settlement Funds (QSFs). Here are some of the highlights.

Defendants benefit from a QSF because they can deduct settlement payments immediately upon payment to the QSF, even if it takes years to actually settle the plaintiff’s dispute.

Plaintiffs benefit because when settlement funds are held in a QSF, plaintiffs then have time to plan how to eventually receive the funds (i.e., structured settlement, lump sum payout) without taking receipt of the funds for tax purposes.

QSFs are not required to be trusts, administrators are not required to be licensed trust companies, and QSFs do not need to be approved by and subject to the continuing supervision of a court of law. They can be those things, but they are not legally required.

QSFs do not take the place of structured settlements. A QSF is the vehicle used by the QSF administrator to purchase a structured settlement annuity. QSFs are temporary holding accounts for settlement funds until decisions are made on how the funds will be distributed.

Follow this link to read Robert and Alex’s article:
https://www.woodllp.com/Publications/Articles/TaxAlert/IRS_Rules_Give.pdf

For questions about QSFs and structured settlements, please feel free to give me a call or contact me.

Address

895 Dove Street, Suite 300
Newport Beach, CA
92660

Telephone

+18007343910

Website

Alerts

Be the first to know and let us send you an email when Structured Settlements by Patrick Farber posts news and promotions. Your email address will not be used for any other purpose, and you can unsubscribe at any time.

Contact The Business

Send a message to Structured Settlements by Patrick Farber:

Shortcuts

Share

Category