Periodical payments—means of payment order | Legal Guidance | LexisNexis (2024)

FAQs

What is a periodic payment order? ›

What is a PPO? Quite simply, a Periodical Payment Order (PPO) is a court order that requires the defendant to provide annual payments to the claimant for the remainder of their life, rather than disbursing the compensation as a single lump sum.

A periodical payment is an electronic transfer of funds to another account. The transfer can be set up as a one off or a recurring payment (weekly, fortnightly or quarterly) and can be to an internal or external bank account.

Periodic Payments. Periodic payments are amounts paid at regular intervals (such as weekly, monthly, or yearly) for a period of greater than one year.

A periodical payments order provides for payments made to a spouse/civil partner or a former spouse/civil partner, for themselves or for a child of the family (also known as maintenance).

There is no fear of money running out for the claimant or the family as periodical payments are designed to last a lifetime. Periodical payments are not taxable whereas an invested lump sum is. Means-tested benefits are not affected by periodical payments, so there is no need to organise a personal injury trust.

Introduction. Periodic payments are payments which the user can configure from an Institution to pay an entity based on a schedule. In the UK, this is also known as a standing order.

Periodic payments are very similar to recurring payments, except they are managed outside Corporate Online and require written requests. These payments are also automatically processed at regular intervals.

A nonperiodic distribution involves a lump-sum or ad-hoc withdrawal from a retirement or qualified account. This can be contrasted with periodic distributions received in retirement that are paid out on a regular basis for income. Certain nonperiodic distributions may be subject to penalties and taxes due.

What is The Periodic Payment Settlement Act? The Periodic Payment Settlement Act, signed into law in 1983, gives people receiving court settlements the ability to receive those settlements in a stream of payments which can extend over many years.

What qualifies as equal periodic payments? ›

SEPP payments must be substantially equal, meaning they cannot fluctuate or you may lose the ability to receive penalty-free withdrawals. Payments must be based on the taxpayer's life expectancy or the life expectancy of their beneficiary. You must not be employed at the company that sponsors the retirement account.

The remaining 80 percent of the offer amount does not have to be paid until after the IRS approves the offer in compromise application. A “periodic payment offer” allows the taxpayer to pay the offer amount (after the 20 percent downpayment with the application) in up to 24 months of the application acceptance.

Legal periodicals contain articles about law and law-related subjects and normally fall into one of the following categories: law school reviews; specialized and scholarly journals; bar association journals; commercial journals in specialized fields; or legal newspapers.

Periodic Order Quantity (POQ) is a type of inventory management system where the quantity of items ordered at each reorder point is fixed, and orders are placed at regular intervals, regardless of inventory levels.

A periodical is anything that comes out periodically. Magazines, newspapers, and journals are all periodicals. They may come out daily, weekly, monthly, quarterly or annually, but new issues are released on a fixed schedule.

A nonperiodic distribution involves a lump-sum or ad-hoc withdrawal from a retirement or qualified account. This can be contrasted with periodic distributions received in retirement that are paid out on a regular basis for income. Certain nonperiodic distributions may be subject to penalties and taxes due.

Premium - The payment, or one of the periodic payments, a policyowner agrees to make for an insurance policy. Depending on the terms of the policy, the premium may be paid in one payment or a series of regular payments, e.g., annually, semi-annually, quarterly or monthly.