Structured attorney fees, the single best tax planning tool for trial lawyers

As viewers of our content and commentary over the years know, Wahlstrom & Associates is one of the nations leading experts in and advocates for structured legal fees. These secured annuity funded programs allow trial lawyers and other lawyers to carefully, securely and wisely move taxable income from a large case or a banner year, into future tax years so as to smooth out the tax hit and more carefully plan their cash flow needs. 

Structured legal fees, the single best planning option for trial lawyers to reduce their tax burden.

Structured legal fees, the single best planning option for trial lawyers to reduce their tax burden.

In this weeks edition of Speaking of Settlements, Mark Wahlstrom looks at the impact of the 2013 income tax increases on both the state and federal level and the fact that many lawyers are now facing tax rates in excess of 50%. When coupled with the fact that most large verdicts and large fee awards also come with substantial litigation debt financing that needs to be repaid, it is possible that some lawyers can actually net close to zero after paying taxes and litigation loans and financing!

While in past years it was always the advice of tax lawyers and CPA's to take income in the current year as taxes go up, we are now faced with the reality that taxes HAVE gone up and there is a strong argument to be made for deferring income into future years and possibly lower tax rates or brackets. I can't stress this enough, no other profession has the option to safely and securely income average their current year revenue into future years and to not at least examine if this makes sense for your tax situation is beyond foolish! Call your CPA or tax professional, schedule an appointment and find out the key points of what your new marginal tax rates are, what is your anticipated 2013 income and call Wahlstrom & Associates to determine if a structured legal fee annuity is possible on some of your cases in 2013. 

The only certainty at this point is that you WILL pay higher tax rates in 2013 but with careful planning and working with an experienced structured settlement planning professional you can design a plan that works to save you money, fund your retirement and get off the case financing treadmill!

Structured legal fees appear ready to take off in use in 2013

Thanks to the fiscal cliff and the almost 100% certainty that tax rates for high income earners are about to soar, it is highly likely that the use of structured legal fees, also referred to as structured attorney fees, is going to increase dramatically.

The ability of trial lawyers to use standard structured settlement funding vehicles, such as fixed annuity contracts, to design at settlement guaranteed, predictable cash flows that move taxable income from one tax year into future tax years, is a technique that is going to explode in use according to Mark Wahlstrom, President of Wahlstrom & Associates.

Fiscal cliff or an opportunity to save taxes and build a strong financial plan?

Fiscal cliff or an opportunity to save taxes and build a strong financial plan?

In this video Mark explains how structured legal fees work, the general benefit for lawyers, but more importantly some of the new funding techniques that are being developed that expand on the standard annuity funding and which include the use of equity or stock index strategies to increase future yield potential.

Learn more about structured legal fees and how they might help your personal or professional tax planning in future years. Contact the national structured settlement expert and acknowledged expert in structured legal fees, Mark Wahlstrom.