Federal Regulations
IRC Section 104(a)(2)
This section of the Internal Revenue Code excludes damages received on account of personal physical injuries or physical sickness from gross income. This is the foundation for the tax-free status of structured settlement payments.
IRC Section 130
Allows for "qualified assignments," enabling defendants to transfer their periodic payment obligations to a third party. This facilitates the settlement process while preserving tax benefits for the claimant.
State Structured Settlement Protection Acts (SSPAs)
All 50 states and D.C. have enacted SSPAs to protect recipients who wish to sell their future payment rights (factoring). Key provisions typically include:
- Court Approval: Transfers must be approved by a court or administrative authority.
- Best Interest Standard: The transfer must be in the best interest of the payee and their dependents.
- Independent Advice: Payees are often required to seek independent professional advice before selling payments.
Professional Certifications
CSSC
Certified Structured Settlement Consultant
Offered by NSSTA in conjunction with the University of Texas at Austin. Requires 80+ hours of study and passing a comprehensive exam.
MSSC
Master Structured Settlement Consultant
An advanced designation for experienced professionals, focusing on complex settlement planning and master-level case studies.
Find a Certified Professional
Browse our directory to find planners and brokers with CSSC or MSSC designations.
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