It depends on the wording of your original structure contract. To discuss this with our client services representatives, please contact us at 1.800.265.8381 or by email at clientservices@mckellar.com.
A tax-free structured settlement can only be set up if the insurance company settling your claim agrees to it at the time of settlement. Once you have received the settlement money, Canada Revenue Agency will not allow a tax-free structured settlement.
This depends on the practice of your bank. In our experience, most payments are deposited, at the latest, by the end of the first business day after the weekend or holiday.
Our Client Services department provides the following services:
Once the structured settlement has been put into place, it cannot be modified in any way. This is required by CRA in order for you to receive your payments tax free. You have the irrevocable right to receive the payments as they were originally designed. While the structure cannot be used as security for a loan, we can, however, provide you with a letter confirming your payments, if you are seeking a loan from a bank or other financial institution.
Please notify us of your new address by sending a change of address form to clientservices@mckellar.com, or by fax to 519.836.7631. Alternatively, phone us at 1.800.265.8381. If you receive your payments by mail, we need 3-4 weeks notice to ensure there is no interruption in your payments.
Please forward to us, by fax, e-mail or regular mail, a signed void cheque (the correct account holder's name(s) must be embossed in the top left corner) along with your phone number. Once we receive the void cheque, one of our Client Services Coordinators will contact you. If you do not have cheques for the account, you can ask the bank to fax us a direct deposit form (signed by you and a bank representative) or call us at 1.800.265.8381 for more information. In order to ensure uninterrupted receipt of your payments, we should receive your new banking information at least 3 weeks prior to the date of your next payment. Please do not close your old account until you have received your first payment in the new account.
Canada Revenue Agency does not view structured settlement payments as income and therefore they do not have to be reported on your tax return. Structured settlement payments are completely tax free.
Yes. The life company sends out letters, from time to time, referred to as "Certificate of Existence" letters. This is part of their audit process to ensure that their records are current and correct. Simply complete the form and return it in the stamped envelope provided by the life company. If they do not hear from you after an extensive search they may suspend your payments until they can locate you. To avoid any potential disruptions in your payments, please provide our office with any address updates you may have in the future and we will forward them on to the life company on your behalf.