Structuring Attorney's Fees

Structuring Attorney’s Fees

Frequently Asked Questions

1-Q. What documents are required by the Insurance company?

A. ■ Acknowledgement language included in the Settlement Agreement and Qualified Assignment and Release documents.

■ Request for Taxpayer Identification Number and Certification (W-9).

■ Standard forms required include application, proof of age (if applicable), Settlement Agreement, Qualified Assignment, and Release Agreement.

2-Q. Must the claimant structure his/her portion to structure attorney’s fees?

A. No. The claimant need not structure his/her portion to structure the attorney’s fees.

3-Q. Can I structure the fees already paid to me?

A. No. The IRS does not allow structuring money after there has been actual or constructive receipt of the fees or an impermissible economic benefit from the fees.

4-Q. Can I defer tax on fees paid on cases other than physical injury or workers’ compensation cases?

A. No. Tax may be deferred on attorney’s fees only for amounts received as workers’ compensation and/or damages on account of personal physical injury or physical sickness.

5-Q. Can I name or change a beneficiary?

A. The attorney can change the beneficiary as long as payments are being made to the attorney as an individual and not to a firm. Per Stirpes beneficiary designations are not supported.

6-Q. Can I structure cases after the judgment is final?

A. No. The settlement agreement must be completed before the judgment is final. After the judgment is final, you are considered to be in constructive receipt of the fees.

7-Q. Can a structured attorney’s fees annuity with an insurance company include payments to the individual attorney and separate streams to the firm?

A. Yes. You can customize benefit streams and payees. Please have your broker/ Shawn Rabban for full guidelines.

Shawn Rabban  |310 -714- 5616 | |Cal Insurance License: 0613659 |

1575 Westwood Blvd., Suite 201, Los Angeles, CA, 90024

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