Question 1

What is a Berkshire Hathaway Group Structured Settlement?

Accepted Answer

A structured settlement allows you to receive a portion of your personal injury or workers' compensation case proceeds in the form of future payments. The payments are designed in collaboration with your advisors to meet your financial needs and goals. Berkshire Hathaway Group, through its subsidiaries, facilitates and manages these structured settlements.

Question 2

How does the structured settlement process work?

Accepted Answer

The defendant or its insurer agrees to make the structured payments to you. They then assign that obligation to Berkshire Hathaway Group Structured Settlements, Inc. (BHGSS). BHGSS purchases an annuity from Berkshire Hathaway Life Insurance Company of Nebraska to provide the agreed-upon future payments. Once the assignment is complete, BHGSS owns the annuity, and the payments cannot be altered.

Question 3

Are the structured settlement payments subject to income taxes?

Accepted Answer

No, since you do not own the annuity, the entirety of the payments you receive will not be subject to income taxes in the United States.

Question 4

What happens if the insurance company transfers the obligation to make the future payments?

Accepted Answer

In some cases, the insurance company may transfer the obligation to make the future payments to National Indemnity Company (NICO), Berkshire Hathaway's reinsurance company. In this scenario, NICO will fund the future payments from its own account and will not buy an annuity.

Question 5

Can the reinsurance product be used for taxable settlements?

Accepted Answer

Yes, in some cases, the reinsurance product can be used to provide for future payments for taxable settlements as well.

Berkshire Hathaway Group

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Frequently Asked Questions about Berkshire Hathaway Group

What is a Berkshire Hathaway Group Structured Settlement?

How does the structured settlement process work?

Are the structured settlement payments subject to income taxes?

What happens if the insurance company transfers the obligation to make the future payments?

Can the reinsurance product be used for taxable settlements?

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