Sample Quote #1: A 50 year old attorney settles a case for $1,500,000 and takes a $500,000 contingency fee on the case. They decide to take $100,000 immediate cash payment and structure $400,000. In this year, the attorney would only pay income taxes on the $100,000 received now. They decide to take the structured monthly payments at age 65 x 15 years. The monthly payout would equal $4,422 and the total guaranteed benefit would be $795,972. Peace of mind knowing that the attorney has him/herself a $53,000+ /year guarantee just on this case alone. The attorney would only pay taxes on the income in each year that the structured payment is received.
Sample Quote #2: Attorney obtains a settlement where she received a $250,000 contingency fee. Attorney decides to structure $200,000 of her contingency fee and keep $50,000. Right now, she is only taxed on the $50,000 that she is taking now. She has 2 year old and 4 year old child. She wants to put the monies aside for a college tuition fund. $200,000 goes into the structure to be paid in annual payments starting 14 years from now when the oldest will be starting college and then payable for 6 years, ending when the youngest would be projected to finish undergraduate studies. The $200,000 will yield annual payments totaling $55,486 x 6 years. ($332,916). Future attorney fee structured cases can be added to this to build up the college fund portfolio. If it is later decided that one or both children do not attend college, the attorney is free to reinvest or spend the payment however they wish.
Sample Quote #3: A 40-year old attorney obtains a $4,500,000 med malpractice settlement for his client. The attorney receives a $1,500,000 contingency fee. If they take it as a lump sum, they owe Uncle Sam 50% or $750,000 in taxes (federal, state and local) . The attorney chooses to take $100,00 now and structure $650,000 into future monthly income starting at age 55 x 20 years. They will receive $5,838/month x 240 payments = $1,401,045, which equates to $70,044 annually just on this case alone. Future cases can be “piggy-backed” on this one to create additional tax-deferred income.
Sample Quote #4: The attorney is receiving a $650,000 contingency fee. They have had a great year so far with their practice and realize that with any additional income, they would be subject to higher taxation. They decide to structure the money so that he/she and their practice has incoming cash flow of $100,000/year and then the balance of the structure over the next 5 years.
Contact me at rmaguire@epssg.com or 888-377-0330, ext 2 so that I can customize a quote illustration suited to your individual needs.
