| |
| |
 
Sample
Lump Sum Settlements
| TAX
ANALYSIS |
|
COMPARISON
OF A CASH SETTLEMENT TO A STRUCTURED SETTLEMENT |
| |
|
|
| Prepared for: JOHN
DOE |
|
|
| CASH SETTLEMENT |
|
|
| |
Amount
Invested |
$200,000 |
| |
Assumed
rate of interest on investment |
4.0%
|
| |
Government
Bond Term |
20
years |
| |
|
|
| |
Annual
Interest Income |
$8,000 |
| |
Additional Annual Income Earned |
$23,300 |
| |
LTD Benefit received |
$21,600 |
| |
Total Annual Income |
$52,900 |
| |
Taxable Annual Income |
$52,900 |
| |
|
|
| |
Income Tax Due- Estimated @
40% |
$21,160 |
| |
|
|
| |
Net Spendable Income |
`$31,740 |
|
|
|
|
|
