The new year is the perfect time for a clean slate, especially when it comes to financial planning. As an attorney, you’re afforded unique options that allow you to manage your income, wealth, and taxes.
After a big case, you might want your fees right away, but your client needs time to set up a trust. Or, your client may want the settlement right away and you’d like to push back your income. These circumstances can be remedied by a qualified settlement fund (QSF), a tax-qualified account that provides time for both the attorney and client to plan for the influx of money. While safeguarding settlement proceeds from litigation, a QSF separates the business interest between the lawyer and client. QSFs also take the defendant off the hook at the end of litigation, as payment to a QSF is absolutely final for them when all releases are in order.
QSFs offer year-over-year planning for attorneys. Receiving a fee in Q-2 might not be ideal. After all, it might be more beneficial to see how the rest of the year goes. By creating a QSF, you get the power of time. You technically haven’t made any decisions with regard to your fees other than stowing them away for safe keeping and tax planning.
The pre-tax benefits of a QSF, combined with the tax deferred strategies available through structured attorney fees, offer attorneys the ability to save like no other profession.
At Milestone Consulting, our experts find the best method to reach clients’ goals and meet government compliance. Planning-focused rather than product-oriented, we walk a client through the process to help them make the most informed decisions possible. Together, we develop the best course of action and guide our clients specific to their challenges. If you’re interested in starting a QSF, we’d be happy to explain the next steps.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).