Benefit types for attorney fees include...
- Predictable income that you cannot outlive, including Joint Life benefit
- Guaranteed payments for a specified period, or as lump sums
- Fixed or variable annual increases to payments
Structured attorney fees provide the benefit of deferral. Instead of being taxed on the entire fee at one time, income payments are reported to the IRS in the year they are received. Deferred fees can be used for future needs such as retirement, a child's education, or stabilized income for a legal practice.
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
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Potential Benefits of Structuring Attorney's FeesStructuring attorney's fees and using the Index-Linked Annuity Payment Adjustment (ILAPA) rider can benefit the attorney in the long run. SSC1569-1219
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Build Your Financial Future, One Payment at a TimeShow claimant's attorneys the benefits of structuring their fees. SSC1336-0919
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Form W-9 (Rev. March 2023)Request for Taxpayer Identification Number and Certification
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Structured Attorney FeesSSC1259-0222
Additional Content
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Marketing Opinion LetterSSP2996-0323E
Pacific Life, its affiliates, its 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.
All guarantees are subject to the claims-paying ability and financial strength of the issuing insurance company.
Pacific Life & Annuity Company will issue annuity policies if ANY of the following occur inside the state of New York: solicitation, sales, negotiation of settlement, court/legal action, or claimant/payee residence.
Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company (Newport Beach, CA) in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.