ATTORNEY FEE ANNUITIES
Structuring Attorneys’ Fees
Like their clients, attorneys who represent plaintiffs on personal injury cases have the opportunity to take advantage of the tax benefits structured annuities offer. Plaintiff Attorneys are able to convert their attorney fees into future annuity payments. While their clients receive their annuity payments on a tax-free basis, structured attorney’s fees are received on a tax-deferred basis. This means that no taxes are due on the annuity until payments are received by the attorney. This option to annuitize attorney’s fees is available even if the injured client chooses not to structure any of his or her funds.
Annuitizing attorney’s fees offers many advantages:
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Annuity payments offer the ability to spread tax obligations out over time.
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Structure payments are great vehicles for retirement planning.Since the payments are fixed and not tied to financial markets, there is no downside risk inherent with other financial products.
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Since payments can be transferred to a beneficiary upon death, many attorneys utilize annuities as estate planning products.
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Payments can be set up to pay for life or a certain period of time only.
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Payment options are very flexible.Payments can come out monthly, quarterly, annually or in the form of periodic lump sum payments.
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There are no limits on the amount contributed to the annuity.
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Freedom to choose to annuitize all or a portion of the attorney’s fees