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March 29, 2009

Non Qualified Structured Settlement Benefits Magnified By Tax Hikes

by John Darer® CLU ChFC CSSC RSP

A deal reached in the New York State legislature will hike state income taxes by an astounding 31% for all New Yorkers making more than $500,000 a year reports Sunday's New York Post

A second, slightly lower tier would increase state income taxes by 14.5% for singles earning $250,000 to $500,000 annually and for married and joint filers earning $300,000 to $500,000. 

Tax increases increase the intrinsic value of non qualified structured settlements as a tool for resolution of employment cases (e.g. wrongful termination, sexual harassment, qui tam), divorce, structured attorney fees and other settlements which where a non qualified assignment may be used.

New York based celebrities, athletes, actors and actresses may have more incentive to structure their endorsement fees.

Other factors which should stimulate use of non qualified assignments are:

  • Inevitable federal tax increases
  • Proposed end to sliding scale attorney fees in medical malpractice cases in New York, if enacted.

Posted at 04:05 PM in Albany New York Structured Settlements, Athlete Endorsement Fee Structures, Bronx New York Structured Settlements, Bronx Structure Brokers Affidavit, Brooklyn New York Structured Settlements, Buffalo New York Structured Settlements, Connecticut Settlement Planning, Elmira Structured Settlements, Employment Related Structured Settlements, Employment Structured Settlements, Financial Planning, Huntingdon Structured Settlements, Ithaca Structured Settlements, Kings County Structured Settlements, Long Island NY Structured Settlements, Melville Structured Settlements, New York City Structured Settlements, New York State Trial Lawyers Association, New York Structured Settlements, Newburgh Structured Settlements, Non Qualified Assignments, Non Qualified Structured Settlements, NYC Structured Settlements, Plaintiff Attorney Financial Planning, Plaintiff Attorney Settlement Issues, Plaintiff Settlement Planning, Rochester Structured Settlements, Rye Structured Settlements, Settlement Planning Issues, Settlement Tax Issues, Staten Island Structured Settlements, Structured Attorney Fees, Structured Employment Settlements, Structured Settlement Tips For Lawyers, Structured Settlements in Ithaca New York area, Suffolk County Structured Settlements, Syracuse Structured Settlements, Westchester Structured Settlements, White Plains Structured Settlements |

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Guide to Structured Settlements 2024

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    Ways You Can Structure Your Settlement Payments in 2024. With a structured settlement you can have more than one type of payment in a single contract. Different types of structured settlement payments can be customized and combined to meet your needs on a stand-alone basis, or in conjunction with other financial products. Diversify your structured settlement, if you wish, by funding with more than one annuity issuer, with treasury funded structured settlements, index linked structured settlement payments and market based structured .
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  • Structured Settlement Quote Lock-Ins | What You Need To Know
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  • What Are Structured Settlement Annuities?
    Structured settlement annuities are annuities that can provide one or more customized annuity payment streams in a single contract. Read about structured settlement annuities here.
  • History of Structured Settlements
    Tracing the roots of structured settlements history from 1918, when Congress exempted damages for personal injury or sickness from income tax, to the establishment of structured settlements as a core personal injury settlement planning tool to the present day.
  • What Are Market Based Structured Settlements?
    Market based structured settlements are an alternative or supplementary structured settlement solution for the plaintiff, attorney or law firm that: 1. Can afford to take some market risk 2. Have discretionary settlement dollars. Claimants and attorneys alike may find that market-based structured settlements provide the opportunity to receive tax-free income, or tax-deferred income, while enjoying growth potential.
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Qualified Settlement Funds

  • What is a Qualified Settlement Fund?
    Qualified Settlement Funds | What You Need to Know
  • Firmwide Qualified Settlement Funds Debunked
    Firmwide qualified settlement funds have been heavily promoted to trial lawyers, but have been debunked in a detailed analysis in a July 2022 legal opinion a tax partner at the law firm of Faegre Drinker Biddle & Reath, LLP. Trial lawyers and firms who have established Firmwide QSFs or coinsidering establishing a Firmwide QSF should read the analysis as part of their evaluation.

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