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Published on: 8/31/2006
Last Visited: 10/1/2008
"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.
"The expansion of the structured settlement product to provide for Standalone Attorney Fees, along with the recent announcement of MassMutual® Structure Plus - our structured settlement annuity that works with a trust to provide a comprehensive solution for the life-care needs for those who are catastrophically injured - further establishes MassMutual's status as an innovator in the use of the structured settlements in cases addressing the life-care needs of catastrophically injured parties," said Mr. Hawkins.