Settlement Annuity in Spanish—5 Terms
Annuity, Annuity Payments, Structured Settlement, and Structured Settlement Payments Explanation
For definitions of Spanish words used below, we refer to the Real Academia Española (RAE).
Estructurado, Estructurada
First We Need to Define “Structured”
Estructurado/Estructurada is defined as Dotado de estructura — meaning structured. The word can be masculine or feminine depending on the object used.
1. Acuerdo Estructurado
Acuerdo is defined as a convenio entre dos o más partes — an agreement between two or more parties. While commonly used, this translation is imprecise. It doesn’t specifically reference mutual Consideration or transfer of money in exchange for a Release of future claims. It could describe any type of structured agreement such as a painter being paid weekly to paint a house. There is no “release” element to it.
2. Anualidad Estructurada
Anualidad is defined as importe anual de una renta o carga periódica — annual amount of a periodic income or expense. While commonly used, this definition does not fully capture the English meaning of annuity. While some structured settlement annuities are paid annually, monthly payments or lump sum payments every few years are more common. In addition, it doesn’t include the legal aspect of the underlying Release and Settlement Agreement. In loose terms, this may be understood as “Structured Annuity.”
3. Indemnización Estructurada
Indemnización is defined as Acción y efecto de indemnizar — Action and effect of compensating. Indemnizar is defined as Resarcir (compensar) de un daño o perjuicio, generalmente mediante compensación económica — Compensate (make up for) damage or harm, usually through financial compensation. This term translates well to “Structured Compensation” and is, in my opinion, the most accurate way to describe a structured settlement annuity.
4. Liquidación Estructurada
Liquidación is defined as Acción y efecto de liquidar. — Action and effect of liquidating. Liquidar has numerous definitions but the most accurate in this context is Hacer el ajuste formal de una cuenta — Make a formal adjustment to an account. This term is certainly acceptable and is widely used but I believe Indemnización Estructurada is slightly better.
5. Pagos Estructurados
An easy one — no dictionary necessary. Pagos estructurados translates to structured payments. This term is widely used, and easy to understand. However, the term is broad and could refer to many types of payments unrelated to annuities or structured settlements, such as alimony or recurring investment income.
My Experience with Spanish Speaking Annuitants
Final Thoughts
This post came to mind after hearing all of these terms used over the years to describe structured settlement annuity terms in Spanish. In my opinion, the most accurate term is Indemnización Estructurada when referring to a structured settlement. The most accurate term for an annuity is simply anualidad. While renta vitalicia — life annuity — exists, I don’t hear it used often. We use anualidad contingente de vida or pagos de anualidad contingente de vida to describe life contingent payments.
Prior Structured Settlement Annuity Transfers
Annuitants from Brazil, Dominican Republic, Colombia, Ecuador, Mexico
I’ve personally completed transactions with annuitants from Brazil, Colombia, Dominican Republic, Ecuador and several from Mexico. In each case, the annuitant received a settlement from a claim that occurred in the United States. I speak fluent Spanish and in the case of Brazil, pretty good Portuguese.
If you’d like to get a quote for your structured settlement annuity and prefer to speak Spanish (or Portuguese) just ask for Eric. ¡Gracias! Obrigado!
