Why was the Non-Qualified Assignment developed?
It was developed to allow the parties to obtain closure in the same way as in physical injury cases. The defendant is able to: write off the cost of settlement; close its file; not have to act as guarantor of a life company; cut all ties with plaintiff. Plaintiff is able to: defer taxable compensation and legally avoid taking a huge tax hit in a single year; sever all ties with defendant; substitute a highly rated financial giant (Fortune 50 company) for the defendant; obtain a negotiated benefit stream which is almost infinitely flexible and settle more easily at a cost more likely to be acceptable to the defense because of the tax advantages to the plaintiff.
