Attorneys can structure their fees on qualified settlements regardless of whether or not the claimant in their case chooses a structured settlement annuity. Advantages include:
- Deferral of income/tax-deferral advantages1
- Guaranteed income for life or a specified period of time
- A means of designating income for life events (e.g. college expenses, retirement, etc.)
Structuring attorney fees via a structured settlement annuity enables an attorney to report income as the payments are received, rather than being taxed on the lump sum. The guaranteed annuity payments may also provide a greater benefit to the attorney than if they were to receive the fees in a lump sum at the time of the settlement.
1 The federal tax law is subject to change and may be subject to different interpretations. United of Omaha does not provide tax advice. Neither United of Omaha nor its affiliates guarantees any of the intended tax consequences discussed herein. Any discussion of taxes in this material is intended to be general in nature and based on our understanding of the tax laws as they currently apply. Interested parties should consult their own tax advisors to determine how the tax law applies to their own situation. State tax laws may vary.