In this weeks edition of Speaking of Settlements, Mark Wahlstrom looks at the use of structured legal fee annuity programs as a means of reducing the income tax hit trial lawyers often face when they have a big year or big case push them into top tax brackets.
With many states having increased income tax rates, the so called millionaire brackets, coupled with increases in Federal tax rates, trial lawyers face the problem in many cases of paying 50% or more in taxes on large cases. When you couple these much higher tax rates with the fact that many lawyers also have to pay back case debt or loans with after tax dollars, it is not uncommon for an attorney to net close to zero from a large fee.
Structured legal fees, also referred to as structured attorney fees, are a powerful, safe, planning solution that pushes current year income out of 2013 and into the desired tax year. Among professionals only trial lawyers have this option so it is something that should be a standard part of the tax planners tool kit for attorney clients. Learn more about the structured legal fee option from one of the nations premier experts on structured attorney fees, Mark Wahlstrom, and watch for additional videos on this topic over the next few months.