Massachusetts Mutual Life Insurance Co. introduced a structured settlement annuity Thursday for funding stand-alone attorney fees.
The Springfield, Mass., insurance company said this product expands plaintiff attorneys' opportunities to structure their fees for representing clients who settle claims involving wrongful death, physical injury, or sickness. This new use of the structured settlement product makes the option available to plaintiff attorneys regardless of whether their clients choose a structured settlement of the underlying claim.
Under the Internal Revenue Code, plaintiffs qualify for a tax-free settlement, which can be structured at their discretion as periodic payments through a qualified assignment under section 130. Though ultimately taxable when received, periodic payments can be available to plaintiff's attorneys for income management purposes, potentially for the attorney's lifetime.
