by John Darer® CLU ChFC MSSC RSP CLTC
If you are a plaintiff attorney seeking to do some tax planning with structured attorney fees, you are in for a big disappointment if the Defendant is a Travelers insured. You see Travelers WILL NOT permit structured attorney fees. Travelers has a longstanding corporate policy on refusing structured attorney fees, which I confirmed yesterday with Travelers' National Director of Structured Settlements and 2 industry colleagues on their panel. That's simply their policy and they're entitled to one. This is the United States after all!
Instead of getting mad about Travelers' prohibition on structured attorney fees, if tax deferral is on your mind, plan accordingly!
1. You can structure the other cases that come up during the year with insurers who do permit such structured fees Layering multiple income streams through structured attorney fees may actually prove to be a good planning strategy if interest rates rise.
2. If you have a mass tort case or a multi claimant case against Travelers consider using a 468B qualified settlement fund which might be to the benefit of your clients to begin with and afford you some innovative new options annuity and non annuity based solutions for structuring your fees.
3. If you have a single claimant case and optimally, 50 or older, there are retirement planning tools that may also provide you with a significant tax break.
4. Flag your case as soon as you know Travelers is the insurer so that you can plan accordingly. Involve a structured settlement expert as early as possible.
For more details about structured attorney fees and other retirement planning and income planning and protection tools for attorneys such as Attorney Fee Deferred Compensation, please contact Master Structured Settlement Consultant and AM Best Recommended structured settlement expert John Darer® at 888-325-8640.