Impersonation Mode

The Periodic Payment Settlement Act of 1982, clarified Section 104(a)(2) and 79-220, and created a new section, Section 130.

  Periodic Payments Act  
Rules for the Periodic Payments Act
  • The recipient can have no ownership rights in the annuity contract
  • The Plaintiff cannot control the annuity, i.e., assign, accelerate, defer, increase, or decrease the payments.
  • must be able to exclude the full amount of payments from gross income

Payments after death 
  • Any payments made to the estate after the recipient's death are generally fully excludable for income tax purposes to the extent that the pre-death payments were excludable