Unlimited Deferral You Can Layer onto Fixed Structured Attorney Fee Income
Contingency fee lawyers have the ability to defer fees in much larger amounts and without the administrative costs and headaches of qualified pension plans. Fixed and market based solutions are available and there no limit to the amount you can defer. Qualified plans have limits set forth annually in guidelines pursuant to IRC 415.
Fixed structured attorney fees give lawyers stable core income streams, backed by major life insurers issuing structured settlement annuities, or A trust comprised of United States Treasury Obligations, or a major international reinsurer, or private placements. Market based attorney fee attorney fee deferrals, are an alternative that has the potential to give attorneys something extra, for those who are willing to accept the inherent volatility. You can, but don’t have to do one or the other. You can have more than one option as you build a portfiolio of deferred attorney fee income streams
How Do Market Based Structured Attorney Fees Compare to Annuity Funded Structured Attorney Fees ?
As with an annuity-based structured settlement, the future payments must be fixed and determinable. Settlement dollars are allocated as $10 units and upon settlement, the plaintiff selects a future payment schedule that specifies the quantity of units to be included in each payment. The actual dollar value for each unit is determined by the performance of the underlying investment at the time of payment. Payment options include quarterly, semi-annually, annually, and/or lump sums. While lifetime payments are unavailable, payments can be scheduled through normal life expectancy. The defendant/insurer must agree to fund, execute a release including specific payment language, and complete an assignment agreement.
Be proactive and be sure your attorney retainer agreement addresses the possibility of attorney fee deferral. Add language to your existing contracts and make it a standard part of your retainer. Other rules may apply. Call us now at 888-325-8640 to discuss your attorney fee deferral needs.
