STRUCTURING ATTORNEY'S FEES
The U. S. Court of Appeals for the 11th Circuit
affirmed a Tax Court ruling against the IRS that attorneys may
structure their fees, holding that taxes are payable on structured
attorney fees when the amounts are received.
To accommodate the continuing requests for attorney
fee structures, certain companies have developed methods of
structuring attorney fees patterned after this case based on the
Internal Revenue Service’s long-standing positions on non-qualified
deferred compensation.
WHY CONSIDER STRUCTURING YOUR FEES?
Spreading fees over several years avoids a higher tax
bracket and allows the money saved in taxes to be invested at little
or no risk with no money management fees. As an added feature,
the moneys in a structured settlement are exempt from creditors.
EXAMPLE TO FUND RETIREMENT
Structured to fund retirement plan in 20 years, one can choose a guaranteed lump sum or monthly payments for life.
Call to obtain more and an illustration for your case.
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