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Attorney Services
Attorney Fee Deferral Strategies
Maximize your financial planning as a plaintiff attorney. Discover the opportunities to defer your contingent fees through tax-advantaged investments and secure a more stable future. Learn about the benefits of structured attorney fees using annuity and non-annuity options.
FAQs
Frequently Asked Questions
If you have questions about our Attorney Services and the ways we can help you maximize your income while managing cash flow, visit our Attorney FAQ page. You’ll find answers to many commonly asked questions about our services.
Why Defer?
Pre-Tax growth
In an attorney fee deferral, the deferred amount is invested pre-tax, grows pre-tax, and the attorney only pays taxes on amounts received in future years. Payments are taxed as regular income.
Fixed annuity options for attorneys
The terms of the fee deferral, including the investment vehicle, amount, and frequency of payments, are agreed upon between the attorney and investment provider within the settlement documents.
Payments under a fee deferral may be received on a periodic basis, such as monthly or annually, or in a lump sum. The timing and amount of payments are determined by the terms of the agreement and may be subject to various restrictions, such as minimum and maximum payment amounts, or payment duration. You can elect to begin receiving payments immediately or beginning at a later date.
The income received under a fee deferral is reported on your tax return as ordinary income in the year it is received. The net result is pre-tax growth of your deferred fee.
market-based options for attorneys
Non-Fixed Annuity options for attorneys looking to defer their fees include variable annuities, index-linked annuities, and market-based portfolios. There may be minimum investment requirements for these types of fee deferrals, which can vary by product. There are usually costs involved such as annual fees.
The advantages of non-fixed annuity options include the potential for higher returns and flexible investment options, allowing the attorney to potentially choose from a variety of underlying investment options, such as mutual funds or stock market indices. However, these options also come with higher risk, and there is no guaranteed rate of return. It's important to carefully consider your investment goals, risk tolerance, and financial situation before choosing a non-fixed annuity option for fee deferral. We can discuss your options.
Law Firm Financing
While the contingent fee practice offers advantages, litigation can incur significant upfront costs without any guarantee of reimbursement. Unfortunately, the stringent loan approval process of banks can limit a law firm's access to immediate capital.
We are here to provide an alternative. Thanks to our industry connections, we offer affordable funding solutions for law firms. Whether your firm is a small solo operation or a large corporation, our partners provide tailored funding options, such as loans, credit lines, and advances on contingency fees yet to be collected. Further, some of the fee deferral options offer a loan option, giving you the freedom to defer your fees while knowing you will have access to capital if the need arises.
With our expertise and access to reliable lenders with favorable rates, we can assist you in selecting the ideal financing for your firm's needs and help you avoid risky up front costs.
Settlement Checklist
Plaintiff’s Attorney Best Practices
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🔲 Qualified (Physical Injury) or Non-Qualified (Taxable)?
🔲 Is Court Approval Needed? (Minor, Estate or Disabled)
🔲 Edit Draft Release to Include Structure Language
🔲 Set Funding Deadline for Cash & Structure Checks
🔲 Lien Resolution
🔲 Government Benefits Analysis / Preservation
🔲 Medicare Set Aside (MSA)
🔲 Lawsuit Loans to Repay
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🔲 Fixed & Variable Structured Settlements (Distributive Income & Stability)
🔲 Trust Services (Spendthrift, Government Benefits or Legacy Protection)
🔲 Investment Needs (Indefinite Plans; Wants Accumulation & Variable Growth)
🔲 Insurance Needs
🔲 Estate Planning / Probate Assistance
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🔲 Attorney Fee Deferral & Loan
🔲 Strategies Insurance Needs
🔲 Investment / Estate Planning / Trust
