As an attorney, you can also take advantage of tax benefits of a structured settlement, even if your client chooses not to. By structuring a portion of your fees, our attorney clients are able to create tax-deferred security for the future. Since the annuity payments will not be taxed until the year in which the payments are received, the tax burden can be spread over a longer period, reducing the overall amount of taxes paid. Opting for guaranteed monthly payments or lump sum payments, our attorney clients offset ongoing overhead expenses such as office space, payroll, bonuses, or employee healthcare. Structured annuity payments create a stabilizing stream of income for the practice.
Attorney fee structures can also plan and pay for larger life events such as children's college education or paying off a home mortgage. Many of our attorney clients defer a portion of their fees until retirement age. Not only does this increase the amount of retirement income, the tax deferral benefits are greater since retirees are often in a lower tax bracket. The payments can be tailored to fill gaps in retirement planning and be set up for a short-term duration, or offset cost-of-living inflation.
With the flexibility to design the payments - anything from monthly payments, lumps sums for large purchases, and also being able to start payments now, or commencing in 20 years. Structured annuities are a great way to diversify retirement investments without the risk of reductions due to a change in interest rates or market fluctuation. Whether payment begin immediately or are deferred sometime into the future, structured attorney fees can help maximize income and ensure the money will be there when you need it most.