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There is also an option of a guaranteed payment until the death of the person or persons named in the contract. Many times cases are settled by having a separate insurance company issue an annuity contract to make regular monthly or annual payments in the future. It is up to the individual to decide if the payment of a settlement or judgment be carried out by periodic payments or on an annuity basis (or a structured settlement). Any such possibility should be covered under fee agreement.
In most cases, the lawyers fees are computed and collected as a percentage of the cost of an annuity and are paid from any initial cash payment made as part of the settlement. It is quite possible to structure the lawyers fees .The benefit of structuring the lawyers fees is that it reduces the amount of current taxable income from a large fee, allow the funds to grow tax-deferred and spread them over many tax periods. There is a document which needs to be signed by the lawyer, "hold harmless" agreement and be responsible for his or her determination as to the tax treatment. The fact that the annuity companies are willing to establish a structured fee arrangement, however, does indicate confidence in the desired outcome.
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