Practice Areas
Blog 
General
- Hospital Staff Fails to Diagnose Patient with Deep Vein Thrombosis; Patient Dies!
- Study Finds Top Cause of Hospital Infection Outbreaks; the Norovirus!
- Stenting Follow-up; Mortality, Stents, and Physicians--a Correlation?
- Stent or Surgery? What Should A Patient Elect to Open a Clogged Neck Artery?!
- New York Jury Awards $3 million in Newborn Cerebral Palsy Case
News
Posted on 11/14/2011
Posted on 8/1/2011
Posted on 7/9/2011
Posted on 10/5/2010
Posted on 9/17/2010
Library
General
- Discover how you can get the special services for your disabled child in an Individualized Education Plan in Kingston, New York
- Discover how you can get top-notch health insurance for your family for less than $200 a month in Kingston, New York
- The Top Reason why a Supplemental Needs Trust may be right for your personal injury settlement in Kingston, New York.
- Discover the two biggest drawbacks of a supplemental needs trust for injury victims in Kingston, New York.
- The #1 thing you can do to avoid legal malpractice (for lawyers) in Kingston, New York
401(k) not working? Try this.
Contingent fee personal injury lawyer often lament the unpredictability of their income, and they may also lament the need to resort to borrowing to finance their cases. A simple solution is a financial discipline that is only available to contingent fee personal injury lawyers: the legal fee structure.The concept of a legal fee structure is a tax-advantaged installment plan wherein the contingent fee lawyer can decide before settlement that instead of taking one-third (or other percentage) contingent fee upon settlement of the case, he wants that fee paid over time. The amount of that fee will be paid usually by the defendant to a third party, typically a life insurance company, for the purchase of annuities benefiting the attorney.
The lawyer must decide to do this before the case settles, as the lawyer technically has not earned his fee until the settlement documents are actually signed. The attorney has complete discretion whether to structure all of his fee in this way, or any percentage of it that he wishes.
The case that is cited as establishing the authority for attorney fee structures is Childs v. Commissioner, 103 T.C. 634 (1994), affirmed without opinion, 89 F.3d 56 (11th Cir. 1996). Over the past few years, the IRS has uniformly cited Childs favorably and permits attorney fee structures.
In the case of structured attorney fees, the attorney will be taxed only when and as he receives each periodic payment, according to the schedule the lawyer has set to suit his personal finances.
Why is this a good idea? Stretching out payments over time yields a better tax result, and it can mean a lower overall tax burden. It is usually not possible to make taxable income tax-fee, but delaying it is another matter.
The longer the attorney wishes to stretch out the payments, the better the financial result. In essence, the lawyer is able to build a kind of unlimited individual retirement account. The payments might start right away and go for the next five or ten years, or alternatively, the payments might be deferred entirely for ten or fifteen years, building up tax-free. Thereafter, the annuity can begin paying out annually for the rest of the attorney's life, or even the joint life of the attorney and his spouse. There is almost unlimited flexibility.
When plaintiffs' lawyers complain about the difficulty of contingent fee practice, it is worth reminding them that this is an extraordinary benefit that applies only to them. Some very successful contingent fee lawyers structure a particular percentage of every case as a kind of retirement fund. This makes sense.
If a contingent fee lawyer structures say 15 percent of every fee and puts it away tax-deferred for a rainy day, he would have achieved retirement income stabilization, estate planning and tax-deferred advantage that most people--and even most lawyers--can't achieve.
Free Book
The Seven Deadly Mistakes of Malpractice Victims
ONE BIG PROMISE
You will not be another of the 98,000 victims of medical malpractice in the United States in 2009 if you read my FREE BOOK. I have a book that will tell you why most victims of medical malpractice never recover a penny. If you are the victim of medical malpractice, we will rush this free, valuable information so you know what to do. If you don't call now, you have only yourself to blame.
You will never have to worry about medical malpractice again if you call this toll-free number, 866-889-6882, for your free book, The Seven Deadly Mistakes of Malpractice Victims, and an audio CD of the book, or you can request the book here and the book will be rushed to you immediately at no cost.
(New York residents only)
Connect With Us
Are we friends on Twitter and Facebook yet? I regularly post tips and advice about medical malpractice that I know you’ll enjoy. Click the links and let’s connect!
Free Case Evaluation
Begin your case review by filling out the form below or call us at 866.689.9692
John H. Fisher
303 Clinton Avenue
Kingston, New York 12402-3058
Phone: 518.265.9131
Toll Free: 866.889.6882
Get Directions
Contact Info
John H. Fisher
303 Clinton Avenue
Kingston, New York 12402-3058
Phone: 518.265.9131
Toll Free: 866.889.6882
Video Library
General:
- Personal Injury Attorney In New York Is Motivated By The Difference His Case Results Make In Peoples Lives
- How To Know Which Law Firm Is Right For You According To Medical Malpractice Attorney In New York
- Knowing You Are The Victim Of Medical Malpractice Can Be Tricky According To New York Attorney