Monday, April 2, 2012

»MassMutual joins growing list providing standalone fee structures

MassMutual joins growing list providing standalone fee structures

MassMutual announced they will now use their structured settlement annuity product to service standalone attorney fees. They join a growing group of life companies offering a valuable financial planning and tax deferral to attorneys.

The following is an excerpt from the press release:

"For the legal community, structuring standalone attorney fees offers plaintiff attorneys who represent catastrophically injured persons yet another option in receiving their fees over the long-term," said Tom Hawkins, vice president and head of MassMutual's Settlement Solutions Division. "The attorneys in these cases will have the same access to the financial strength of MassMutual as their clients."

Under existing IRC sections 104(a)(1) and 104(a)(2), a plaintiff qualifies for a tax-free settlement, which can be structured, at their discretion, as periodic payments through a qualified assignment under section 130. Although ultimately taxable when received, periodic payments can now be available to the plaintiff's attorney for income management purposes, potentially over the attorney's lifetime.