Phil Mickelson and celebrity endorsement fee structures, a path to lower tax rates

Last week, famed PGA golf professional Phil Mickelson got himself into a bit of a PR nightmare by discussing how his income tax rates had increased dramatically and the impact it was likely to have on his professional and financial planning. As a resident of California he is subject to the new millionaire tax for that state, as well as the revised Federal tax rates that went into effect on January 1, 2013, resulting in a marginal tax rate of 63% on his earnings.

Lost in the resulting furor is the fact that professional golfers, most of whom make far more money on endorsement contracts than tour earnings, have available to them a technique called a structured celebrity endorsement program. These are very similar to structured legal fees, structured property sales and structured oil & gas lease bonus programs, but they have seen little use over the past five years as upper income tax rates were at historically low levels.

Phil Mickelson tax rates

In this weeks edition of The Tax Law Channel and Speaking of Settlements, Mark Wahlstrom, President of Wahlstrom & Associates in Scottsdale, AZ, speaks with noted tax law expert Attorney Robert Wood on the use of these structured settlement products and how using a structured celebrity endorsement program could save people like Phil Mickelson a lot of money by pushing those earnings into future years.

You can learn more about these planning techniques by visiting Wahlstrom & Associates web site as seeing exactly how they work to reduce current taxable income and safely defer it to future tax years.

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.