structured settlement

(1)The term “structured settlement” means an arrangement— (A)which is established by— (i)suit or agreement for the periodic payment of damages excludable from the gross income of the recipient under section 104(a)(2), or (ii)agreement for the periodic payment of compensation under any workers’ compensation law excludable from the gross income of the recipient under section 104(a)(1), and (B)under which the periodic payments are— (i)of the character described in subparagraphs (A) and (B) of section 130(c)(2), and (ii)payable by a person who is a party to the suit or agreement or to the workers’ compensation claim or by a person who has assumed the liability for such periodic payments under a qualified assignment in accordance with section 130.

Source

26 USC § 5891(c)(1)


Scoping language

For purposes of this section
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