Structured Attorney Fees

Whether you begin to take payments for qualified physical injury cases immediately or defer until a future date, an annuity that structures attorney fees can help you maximize and protect income for the rest of your life. Even if the claimant chooses not to structure a settlement, structuring your fees as an attorney can be a powerful strategy. Talk with your Structured Settlement Consultant about how structured fees can spread taxable income over time, potentially reducing your overall taxable income.

 

Watch now to learn more about the benefits of structuring attorney fees. 

Benefits of Structured Attorney Fees

Reduce your overall income-tax burden now or in the future. Potential tax benefits of structuring fees include:

  • Reduced income-tax burden: Instead of being taxed now on the entire amount, your income payments are reported to the IRS only during the year you receive them.

  • Postponed receipt of fees: Push out fees to a time that makes sense for your financial future.

  • Spread taxable income over time: With proper planning, income-tax deferral can result in lower overall taxes—and a higher net income for you.

Benefit Types for Every Need

Pacific Life allows you to specifically customize your payment streams to help manage future needs. Taking advantage of this flexibility can yield several positive results, including:

  • Predictable income that you cannot outlive.

  • Growth potential with the optional Index-Linked Annuity Payment Adjustment (ILAPA) rider.

  • Payments for a specific period to address future concerns, such as paying your home mortgage or funding educational costs for your children.

  • Lump sums to help pay for a large purchase.

Explore Sally's Scenario

In this hypothetical example, Sally is a 50-year-old attorney who settles several qualified personal injury cases each year. Looking ahead, she envisions cutting back on the time she spends on her business in her late 50s before finally retiring in her 60s.
See Sally's Outcome

Increase your potential to earn more over time with an Index-Linked Annuity Payment Adjustment (ILAPA) rider

The ILAPA rider can allow you to earn more income based on any positive returns of the S&P© Index—without downside risk.1

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Increased payments over time

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Opportunity for long-term growth

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Downside protection, as payments will never decrease

Learn More About ILAPA

A Word About Constructive Receipt

Careful consideration must be taken to avoid constructive receipt of the fees. The settlement agreement must be completed before the judgment is final and without any "property" being transferred to you. After the judgment is final, you are considered to be in constructive receipt of the fees and will be subject to immediate taxation

 

For Use with Clients

 
Build Your Financial Future, One Payment at a Time
Form W-9 (Rev. March 2023)
Potential Benefits of Structuring Attorney's Fees
Structured Attorney Fees
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Additional Content

Marketing Opinion Letter
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For more information, contact your Structured Settlement Consultant. 

Pacific Life Insurance Company

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1Selecting the ILAPA rider may result in a varying benefit amount based on the annuity type and period selected.

Contract Form Series: ICC11:10-1213 Rider Form Series: ICC13:20-1280 State variations to contract form and series may apply.

The Index-Linked Annuity Payment Adjustment rider is not a security and does not participate directly in the stock market or any index, so it is not an investment.

Pacific Life is a member of the National Structured Settlements Trade Association.

 

Pacific Life, its affiliates, their distributors and respective representatives do not provide tax, accounting or legal advice. Any taxpayer should seek advice based on the taxpayer’s particular circumstances from an independent tax advisor or attorney.

 

Insurance products and their guarantees, including optional benefits, annuity payout rates, and any crediting rates, are backed by the financial strength and claims-paying ability of the issuing insurance company. Look to the strength of the insurance company with regard to such guarantees because these guarantees are not backed by the independent broker/dealers, insurance agencies, or their affiliates from which products are purchased. Neither these entities nor their representatives make any representation or assurance regarding the claims-paying ability of the issuing company.

 

Pacific Life refers to Pacific Life Insurance Company and its subsidiary Pacific Life & Annuity Company. Insurance products can be issued in all states, except New York, by Pacific Life Insurance Company and in all states by Pacific Life & Annuity Company. Product/material availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.

 

The home office for Pacific Life & Annuity Company is located in Phoenix, Arizona. The home office for Pacific Life Insurance Company is located in Omaha, Nebraska.

 

For financial professional use only. Not for use with the public.