Relevant Tax Codes:

Section 104 - Most structured settlements will qualify for tax-free status if they meet specific requirements of the Internal Revenue Code. Section 104(a)(1) refers to workers' compensation claims and Section 104(a)(2) refers to liability claims.

Internal Revenue Code Section 104
Compensation for Injuries or Sickness



Section 130 - Allows for assignments of obligations providing certain conditions are met.

Internal Revenue Code Section 130
Certain Personal Injury Liability Assignments