Other Settlement Planning Topics

Plaintiff Recovery Trust: How to Double or Triple a Plaintiff’s After-Tax Net Recovery

Two Powerful Tax-Saving Strategies for Taxable Settlements Are you an attorney or a plaintiff dealing with a settlement that will be taxable (meaning the plaintiff will have to pay income taxes on the recovery)? Are you concerned about the hefty tax burdens that can...

How Structured Settlement Annuities Help Plaintiffs in Taxable Cases

If you’re a plaintiff navigating a legal settlement, you may be wondering how much money you’ll actually get to keep after taxes and legal fees. Getting a legal settlement or judgment often sounds like you’ll be getting a windfall of cash. But you may be surprised…

Are Punitive Damages Taxable? Here’s What the IRS Says

If you’re involved in a lawsuit that may include punitive damages, you may be wondering, “Are punitive damages taxable?”. This is a great questions that many plaintiffs have when navigating legal settlements. In this article we’ll be…

Do You Pay Taxes on Lawsuit Settlements? 5 Common Examples

Settlement taxes can be confusing, and paying taxes on lawsuit settlements is a reality many plaintiffs face. In this article, we will walk through the tax implications of five common types of legal settlements so you can see which…

How the Tax Cuts and Jobs Act Created the Plaintiff Double Tax Trap

The Tax Cuts and Jobs Act (TCJA) of 2017 had a significant impact on plaintiffs receiving taxable settlements. Prior to this change in the law, plaintiffs could list their attorney's fees as a deduction on their tax returns, avoiding paying tax on the attorney fee portion. However, the TCJA changed this. Now, individual plaintiffs cannot claim...

When a Legal Recovery is Considered Taxable to the Client

Introduction: As a plaintiff attorney, it is important to ensure that a client will get a fair amount out of their settlement award. Unfortunately, for taxable damages cases, clients have to pay taxes on the amount that they will receive and the attorney’s fee portion of the case. But there are tax planning strategies that can help clients...

What Happens When a Past Client Decides to Sell Their Annuity

It’s common for some clients to ask their attorneys if it is possible to sell their structured settlement annuities which have been established years prior. Annuity holders are legally allowed to sell their annuities. However, Internal Revenue Code section 5891 and state Structured Settlement Protection Acts govern the process for people who...

What Are the Special Needs Trust Distribution Guidelines?

Clients often ask us about the distribution guidelines of a special needs trust. Clients who will benefit from a special needs trust are most likely receiving needs-based government benefits like SSI and Medicaid, so it is a good idea for them to understand the items that special needs can pay for. Due to the vast number of items that special...

How to Protect Clients From a Large Tax Bill in Taxable Damage Cases

Here at Amicus Settlement Planners, most of the calls we receive are for case settlements that are based on a personal physical injury. But every now and then we get calls for a taxable damages case. Taxable damages lawsuits include cases involving breach of contracts, discrimination, sexual harassment, defamation, fraud, whistleblower, or...

How Can Attorneys Protect Clients with Annuities from Factoring Companies?

Past settlement recipients who elected to receive all or a portion of their settlement funds via a structured settlement annuity might be tempted to sell their annuity payments to factoring companies (more commonly known as “cash now” companies). These companies often purchase annuity payments for pennies on the dollar, leaving your past...

Who Qualifies for a Special Needs Trust?

Personal injury attorneys frequently call our office and ask who qualifies for a special needs trust. There are 3 requirements for an individual to be eligible for a special needs trust:  The client must be 64 years old or younger. The client must be deemed disabled by the Social Security Administration. The client should be receiving either...

Exploring the Loan Feature of Deferred Compensation Plans

Many attorneys are not aware that if they defer fees into their deferred compensation plan, there is an option offered by the plan administrators to take a loan if they need access to capital. For example, let’s assume an attorney has deferred $500,000 into his or her deferred compensation account. The attorney can then apply for a separately...

Contact

Let Us Help You

Our goal at Amicus Settlement Planners is to be the premier, comprehensive resource for plaintiffs and plaintiff attorneys for all of the financial and legal issues that arise at the time of settlement.

We'd love to explore how we can help you and your clients.