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What is qualified assignment?

April 26, 2017assignment qualified

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What is qualified assignment?

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A qualified assignment is an assignment conforming to IRC 130. It transfers the obligation to make the periodic payments from the defendant or its insurer to an assignee company. The assignee company is usually related to a life insurance company. The assignee company typically purchases an annuity from a related life insurance company. The assignment normally releases the defendant from all future obligations, although this is not a requirement of the tax law.