Structured Attorney Fees
While structured settlements are an excellent option for personal injury claimants, they are also available for counsel except they are tax deferred, not tax free. Using a fee structure, all or part of your attorney fee can be deferred pre-tax and paid over time. With an attorney fee structure, you will receive the same tax-deferral benefits as a Qualified Pension Plan without all the hassle of having to adhere to the requirements of a qualified plan including how much you can put in. Benefits can begin whenever you so choose. In addition, 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.
Millennium Settlements offers several types of options for attorneys who want to defer income and taxes—from a traditional structured settlement annuity to Fee Structure Plus, which allows for market-related returns. Millennium Settlements is unparalleled in its experience of serving its attorney clients and ensuring customized plans that best meet their unique financial needs.
Structured Settlement Annuity
Attorneys can defer their fees and defer taxes into the year(s) in which they receive each payment(s). Each payment is fixed and determined at the time the structure is established during the settlement. The funding vehicle is an annuity that is from highly rated life insurance companies.
Fee Structure Plus (FSP)
FSP allows the attorney to invest their fee in something other than a traditional annuity or US Treasuries in order to attempt to realize a greater rate of return on their investment. With FSP, the attorney has the flexibility to allow the funds to be managed by their own personal financial advisor or by an established and reputable trust company that has been designated for the program. If you want your fees to be invested pursuant to a comprehensive investment plan as decided by you and/or your advisors, but on a fully tax deferred basis, the compounding opportunity provided by FSP cannot be beat!
Enhanced Attorney Fee Structure (EAFS)
EAFS is also a structured settlement, but it allows the attorney to invest the fee in one or several pre-selected Vanguard Life-Strategy Funds that are administered by Midwest Trust. This unique product allows attorneys to structure fees, defer income, defer taxes, and have the ability to potentially earn a higher rate of return in the market. This product is for the attorney who is looking for a potential higher internal rate of return and desires more control over how his/her money is invested. As with the other attorney fee products, EAFS allows attorneys to have 100% of their fee go into the investment on a pre-tax basis, allowing for greater tax-deferred growth.
"From my perspective structuring a portion of my fee out of the settlement proceeds of the case we worked together on several years ago was the smartest move I ever made. With Millennium’s help I put together a financial plan that provided my three children with an ample amount of money to subsidize their entire college educations. This was of great benefit to me as it gave me tremendous piece of mind knowing that the one of the greatest costs and causes of worry a man of my age encounters is subsidizing his children's education. Having that taken care of allowed me to begin putting more substantial sums in my retirement account giving me hope I can retire at a younger age than I initially anticipated."
--Attorney Richard M. Kenny