In 2013 it is almost a 100% certainty that tax rates for the highest income earners are going to go up, and most likely they will go up dramatically. This out come is almost guaranteed as the political parties battle about the "fiscal cliff" deadline and the result is that trial lawyers all over the country are going to be facing huge tax bills on large case settlements in 2013 and beyond.
The structured settlement profession has one of the most power tax planning tools available to trial lawyers and that is the structured legal fee, also referred to as the structured attorney fee. This technique which is battle tested and backed up by tax court and SCOTUS decisions, allows a lawyer to move taxable income from one year into future years so as to reduce the tax hit, spread out income and get off the roller coaster of simply paying off taxes and case debt when the big settlement or fee comes in.
Mark Wahlstrom in this weeks edition of Speaking of Settlements looks at what to expect in 2013 and beyond when it comes to structured legal fees. There are new planning options, funding options and techniques coming online that both advisors and lawyers need to be aware of. Watch this weeks edition on structured legal fees and start to become more aware of how trial lawyers and their tax planners can work with structured settlement experts nationally to design safe, secure and predictable cash flows.