In this weeks edition of Speaking of Settlements, host Mark Wahlstrom examines the topic of structured legal fees, or structured attorney fees, and how the tax cliff and higher tax rates could lead to an explosion in the use of this powerful tax and financial planning tool.
Structured legal fees have been a fixture in the structured settlement profession for decades, but over the last decade or so there has been a decline in the use of them for planning future cash flows for trial lawyers looking to defer fee income into future tax years. The fact that since the early 2000's most attorney's and tax planners have realized that they were in an era of unusually low tax rates for high income earners, both on the state and federal level. That era, for better or worse, is drawing to a close and now we are about to experience another period of time where in high income earners are going to have substantially higher income tax rates and as such will be looking for options to spread out income and move into lower tax brackets.
In this video, structured settlement expert Mark Wahlstrom of Wahlstrom & Associates reviews some of the coming changes in the structured legal fee market, options trial lawyers and attorney's will have to structured income and some of the new annuity and tax planning options available to attorneys who wish to use structured attorney fees in their tax and business planning.