rice farmers settlement information

Thank you for visiting the Forge Consulting Rice Farmers Litigation webpage. Forge Consulting is a national settlement planning firm specializing in assisting claimants in the process of planning for the receipt of settlements. We have been asked by your attorneys and Comerica Bank to provide information and options to claimants who are involved in the Rice Farmers Litigation, which you can find below. If you need further information or would like to speak with us, please call our Rice Farmers Litigation Help Line at 1-800-979-3291.

It Is Your Choice—Choose More Time to Fully Consider Your Options

The Comerica Bank Qualified Settlement Fund, or QSF, will provide you with the opportunity to review with your tax professional the tax implications of receiving all of your settlement funds in 2011 or over several years via a periodic payment plan established through an annuity or funding agreement. If you find that receiving all of your settlement money in 2011 or in a single tax year will cause you to incur a large tax obligation then the Comerica Bank QSF can provide you the flexibility to properly plan for the receipt of settlement money for tax planning purposes. Alternatively, you may decide that regardless of the tax obligation you may wish to receive the benefits of a structured periodic payment plan.

Once your settlement money is transferred into the Comerica Bank QSF, you can then choose to either receive the settlement amount in one lump sum or to establish a schedule of periodic payments to be made to you in the future in order to minimize your tax liability and/or maximize your farm credits.

To assist in your evaluation, Forge Consulting will provide illustrations of a custom periodic payment plan available through a life company rated A+ or higher by A.M Best, and a non-qualified assignment company. These illustrations can be revised to your specific requirements and preferred payment schedule and Forge will work with you and your tax professional design a plan that best works for your unique circumstances.

Organizing these final steps is important, so please take the time to review the included materials and carefully consider your options as the ability to "Opt In" is only available now and will not be available later. Contact information for Forge is listed below should you have any questions.

Opt-Out

Opt-In

Establishing a Periodic Payment Plan

If you elect to participate in the Comerica Bank Qualified Settlement Fund, you have the ability to design a periodic payment plan for receipt of your settlement funds. The taxation for any future periodic payments will be deferred until the year of receipt of those payments. You will have the freedom to design the plan to meet your unique needs as well as to select an initial lump sum amount of cash (note: any lump sum will be taxable in the year it is received but taxation for periodic payments will be deferred). If you choose to design a periodic payment plan, below is an outline of how the process will work:

Claimant

Elects to participate in Comerica Bank Qualified Settlement Fund by December 20, 2011
Selects Lump Sum Amount and Designs Periodic Payment Plan with Forge Consulting
Returns Payment Direction Form with Details
Completes Paperwork Necessary to Set Up Periodic Payment Plan as Provided by Forge Consulting

Comerica Bank Qualified Settlement Fund

Issues Selected Lump Sum Portion to Claimant
Funds Claimant-Designed Periodic Payment Plan with Non-Qualified Assignment Company
Transfers Obligation for Periodic Payment Plan to Non-Qualified Assignment Company

Non-Qualified Assignment Company

Purchases Funding Agreement or Annuity Contract from Life Company Rated A+ or higher by A.M. Best For the Benefit of the Claimant

Life Company

Issues Contract for the benefit of the Claimant
Makes Periodic Payments According to Schedule as Designed by Claimant
Issues a 1099 for the Periodic Payments paid to Claimant in the Year the Payments are Received

How the Process Benefits You

Secured Income Stream
Designed by you and guaranteed by a life company rated A+ or higher by A.M. Best

Deferred Taxation
You determine when and how you receive your settlement money in order to limit your tax liability, as taxation of your settlement money is deferred until the year of the receipt of the periodic payments.

Guaranteed Growth
You eliminate guesswork of how your investment will perform by selecting the payment schedule now, and each payment will be guaranteed by a life company rated A+ or higher by A.M. Best to occur as planned

Flexible Payment Designs
You choose exactly how the contract will make payments to you: lump sums, monthly, quarterly, semi-annual, and annual payment streams are available

Frequently Asked Questions

Who will be the owner of the policy?
A non-qualified assignment company will own the annuity contract, which will be guaranteed by a life company rated A+ or higher by A.M. Best. Having a non-qualified assignment company own the contract will allow you to avoid constructive receipt of the funds until a payment is made to you in accordance with the non-qualified annuity plan you select. This allows you to defer taxation for your settlement money until the years you receive the periodic payments.

Who will make the annuity payments?
A life company rated A+ or higher by A.M. Best, for the convenience of the non-qualified assignment company.

Can I change the payment once I decide?
The payments must adhere to the schedule established at the time the contract is funded and changes cannot be made once the contract is established. However, before the contract is established you will be able to design your payment plan according to your unique needs. You can select scheduled lump sums, immediate payments, deferred payments, or a combination. Payments can be monthly, quarterly, semi-annual, or annual.

What happens if I pass away before the payment schedule has concluded?
Any guaranteed payments will be paid to your estate or your designated beneficiary according to the payment plan you design. Only the estate may be the beneficiary for periodic payments to attorneys for their fees, and cannot be changed.

Documents

Message from Comerica Bank
Download (PDF)

Election Form
Due by December 20 if Claimant Elects to Opt In to Comerica Bank QSF
Download (PDF)

USA Patriot Act Notice
Must be completed and returned with Election Form
Download (PDF)

W-9
Must be completed and returned with Election Form
Download (PDF)

Payment Direction Form
To be completed once a plan has been determined with Forge Consulting
Download (PDF)

Periodic Payment Plans: Example Non-Qualified Annuity Illustrations

Illustrations at $50,000
Download (PDF)

Illustrations at $75,000
Download (PDF)

Illustrations at $100,000
Download (PDF)

Illustrations at $250,000
Download (PDF)

Illustrations at $500,000
Download (PDF)