USA Using An Annuity to Mimimize Tax In Court Case Settlement

[Stanton Bates]

I was awarded a certain amount of money at a settlement conference for my non-personal injury claim. I would like to minimize taxes by having the defendant pay my attorney direct for his contingency fee and then pay the balance of the award to an insurance company to fund an annuity so that I can be paid over a number of years and minimize taxes. Is that possible?

 

[kirby]

I don't think you can count on the defendant going out of their way to minimize YOUR taxes, especially because they lost.

 

[bklynboy]

I think you are talking about a structured settlement which is quite common in personal injury lawsuits. Generally defendant pays funds to the insurance company who issues plaintiff an annuity.

Your attorney can advise if it's possible in your case.