Valdez Team - Structuring Your Attorney Fees

There are many advantages to structuring some or all of your attorney fees from a settled case. Below, we present six key advantages:

Advantages of Structuring Your Attorney Fees

What are the advantages of Structuring Your Attorney Fees?

Let's start by learning about Attorney Fee Structured Deferrals; what are they and how can you benefit? Attorney Fee Structured Deferrals are a valuable tax-planning & investment strategy for any attorney that is paid through contingency fees.

The Valdez Team at Ringler offers several different options for attorneys to structure their fees

Below are six key advantages & benefits of structuring your attorney fees:

Avoid higher federal income tax brackets or marginal tax rates

Lower your federal & state income tax liability that result from large cases

The ability to strategically spread your fees over time, in order to preserve wealth & stabilize future income for attorney and/or firm

Tax-deferred investment growth, similar to qualified retirement plans – but without contribution limits

The flexibility of choosing along a spectrum of fixed (guaranteed rate of return) or market-based (higher risk) options

Invest your savings at little or no risk, depending on your risk tolerance

Always Seek Experienced Professionals & Guidance on Requirements

You must carefully follow all of the rules concerning attorney fee structures in order to avoid any tax issues. Therefore, we highly recommend you consult with a Certified Structured Settlement Consultant (CSSC) and your tax advisor when considering to structure your attorneys fees. Also keep in mind the following:

  • The option to structure your attorneys fees must be arranged prior to, or concurrent with, the plaintiff’s original settlement (normally in the contingent fee agreement).
  • Very specific documentation and wording is required in the settlement documents by the life company, and to avoid potential problems with the IRS.
  • Most life companies require a hold harmless agreement and IRS forms such as a W-9 or W-4 with the structure agreement.

Call us or contact us today to find out more!

For more information on Structured Settlements contact us for a free consultation.

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