Structured Settlement Annuity
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.
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.