We Can Help You Leverage Your Attorney Fees
You already know that structured settlements help maximize settlement value for your clients by providing a steady, low-risk source of income with long-term tax advantages. But did you know you can structure your attorney fees? Using attorney fee structures, plaintiff attorneys can defer their fees and income taxes on those fees for personal injury cases as well as many other types of cases. A lawyer can defer taxes on his or her fees as well as the interest that it earns until the year in which a distribution is actually received from the fee structure.
As an attorney you can do an “attorney fee structure” with a portion or all of your contingent fees from any settlement. An attorney fee structure is a pre-tax and tax-deferred investment vehicle exclusively for attorneys that earn contingent legal fees. Fee structures are a great way to smooth out taxation of income and in some cases avoid application of the Alternative Minimum Tax. Attorney fee structures offer the same types of flexible payment plans as structured settlements do for physical injury victims. You can set up a fee structure to coincide with any type of future need (child entering college, wedding or retirement to name a few) or even to provide current cash flow for your firm. Perhaps the most attractive part is that there are no limitations like there are with other regulated retirement plans (no maximum deferrals or minimum distribution age).
Settlement Asset Management (“SAM”) specializes in tax deferral strategies for lawyers. Our experienced team can provide advice and options for achieving the most tax advantaged outcome for your contingent legal fees. Contact us today for a free analysis and quote.
