Plaintiff Lawyers – Manage your business as well as you manage your cases.

May 9, 2009 by Bill Tilley.

Every firm should draft a business plan and then update annually. After a thorough assessment of your needs, priorities, and goals, you can create tailor-made systems and solutions designed to strengthen your business where it needs help most – maybe its managing your finances, case acquisition strategies, marketing or your retirement options. Most firms leave these and the many other challenges facing plaintiff lawyers to chance.

I know that each firm faces unique challenges and opportunities. Use your contacts, networks, and expertise to improve your handling of the business side of law. Arm yourself with the tools and experts you need to manage your firm now and increase your firm’s future outlook immediately. And best of all, no matter how complex your question, help is just a phone call away as there are tens of thousands of plaintiffs lawyers either going through or have gone through similar challenges. Don’t look at every lawyer as a potential competitor, look at them as a potential partner and a pool of knowledge. You should be networking and tapping this resource continuously. You should freely share your experience, knowledge and work to help other trial lawyers and this will improve all fortunes.

Most trial lawyers should consider bringing in business expertise as their time is best spent litigating cases. You may be at a level that requires a full time CFO or just a part-time off-site CFO to manage your firm’s financial growth and cash flow management. You always hire experts to advise and help maximize your clients cases why not afford yourself the same benefit. Sometimes all you need is an expert to use as a sounding board as you deal with the challenges of an unstable market while other times you will may need outside expertise to guide your firm to the next level. Why waste your time and valuable resources on inefficient or nonexistent management? Challenge yourself, your firm to be a strong business first and power your practice to the next level.

Though it may be the nature of a trial lawyer to go it alone, today’s world demands trial lawyers to run their law practice as a business.

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Limit Your Liability While Protecting Your Client

April 20, 2009 by Bill Tilley.

You have worked diligently achieve justice for your client, now insure their future by giving them access to financial experts that have been providing premier financial services exclusively to the nation’s top plaintiff’s trial lawyers for more than 10 years. Many Plaintiff Attorneys are unsure of their duties and obligations when it comes to the financial aspects of the settlement. As court decisions have shown, Plaintiff Attorney duties stretch beyond simply notifying the claimant of Structured Settlements.

Structured Settlements are NOT right for everyone: Every claimant should be advised of ALL of their settlement options so they can make a well informed decision as to what is right for them. The best way to help insulate you from liability and protect your clients’ interests during the financial aspects of your cases is to retain your own plaintiff-loyal Settlement Planner.

Why Retain A Plaintiff-Loyal Settlement Planning Specialist?

-Regain balance of power in negotiations
-Structured Settlements are NOT right for everyone. As settlement planners we help you and your client look at ALL of the options, explaining the pros and cons of each… and whether or not each option will help them meet their needs and goals
-There is usually NO COST to you or your client for our Settlement Planning services
-Your E&O coverage likely does not cover any financial advice you give your client; leaving you open to unnecessary liability
-Bringing in an expert in the financial aspects of the settlement will limit your liability and fulfill the need to inform your client of their financial options during settlement, providing better overall representation
-Plaintiffs specialists work exclusively for the Plaintiff’s side every day. Over the years we have developed and refined negotiation tactics that help you gain an edge over the defense during the financial aspects of the settlement

Protect your client and your firm beyond the settlement. Knowledge is power.

www.AmicusCapitalServices.com

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About Structured Settlements

April 20, 2009 by Bill Tilley.

Some fifteen years ago the Internal Revenue Service created an opportunity for people who are about to settle a personal injury lawsuit to have any portion of the money you receive invested to produce tax free periodic payments. The interest that is earned is never taxed by the IRS because it is viewed as compensation for the injuries that you have suffered. If, however, you receive all of the money from your settlement as one lump sum in cash, and then you later invest it yourself, or with the help of someone else, the interest that you may earn can be taxed at the same rate as income that you earn from your job. The sad truth is that many people who have suffered injuries and experienced the long ordeal of a lawsuit lose a portion or all of their settlement to bad investments or to taxes that eat away at their good investments. They can fall victim to investment consultants who take commissions and sales charges, and make optimistic promises for their returns, without guaranteeing the results. A structured settlement ensures that you will never lose your money, you will earn highest available interest rates, and never pay taxes on the interest that is earned. You may have any portion of your settlement devoted to a structured settlement, but the plan must be set up before you receive your money and before you sign the papers which conclude your lawsuit. You may decide to receive monthly payments for the rest of your life or only for a specified period of time. The payments may start right away, or wait until a time in your life when you can best use them (like retirement or to pay for college when your children turn age 18). Once you decide on a plan, the terms of your payments are written into the agreement which become part of your settlement.

www.AmicusCapitalServices.com

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Various Options to Fund a Contingent Law Practice

April 20, 2009 by Bill Tilley.

I. What to Look for in a Financial Partner

A. Understands the unique characteristics of trial law firms

B. Understands that client advances are contingent loans

C. Understands the large capital requirements to prepare cases for settlement

D. Program tailor-made for trial law firms and their uneven cash flow

E. Easy to use

F. Inexpensive

G. Limitless source of funds

II. The Perfect Program

A. Easy to use

B. Large line

C. Doesn’t underwrite individual cases

D. Interest passed through to client

E. Payments due only as cases settle

III. Methods of funding a law firm

A. Local Bank

a. Pros

i. Low interest rates

ii. Current relationship-Operating & Trust accounts

iii. Unrestricted use of funds

iv. Low risk of institution going away

v. Centralized banking

b. Cons

i. Small lines, typically not large enough to make significant difference

ii. Firm bears interest cost

iii. Typically secured by personal assets

iv. Onerous, slow credit application process

v. Many decision makers in process

vi. Principle payments due regardless of cash flow or case resolution

vii. Wide range of clients, little in depth knowledge

B. Specialty Finance Company that specializes in legal industry

a. Pros

i. Large line sizes available

ii. May be secured by case portfolio

iii. May be able to pass interest cost on

iv. Increased investment in firm

v. Allows the recapture of funds tied up in case development

vi. May provide detailed expense tracking by client/case

vii. Cash flows match cases dispositions

viii. Programs tailor-made for trial lawyers

b. Cons

i. Higher interest rate

ii. New concept

iii. Few options

C. Self Funding

a. Pros

i. Easy

ii. Cheap

iii. Quick

iv. No paperwork

v. Traditional means of funding a law practice

vi. Inexpensive to client

b. Cons

i. Corporate/Personal funds tied up in case development costs

ii. No liquidity

iii. Investment is limited by liquid assets

iv. Higher cost of operation, interest paid by firm

v. Negative cash flow

D. Refer business to other attorneys

a. Pros

i. Easy

ii. Goodwill with other firms

iii. Support, access to additional support staff and expertise

b. Cons

i. Very expensive (giving up large portion of the fees)

ii. Weakens your firm and may strengthen your competition

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Parties Must “Reasonably Consider” Medicare’s Interest When:

April 1, 2009 by Bill Tilley.

Parties Must “Reasonably Consider” Medicare’s Interest When:

Class I

Claimant is a Medicare beneficiary at time of settlement.

Class II

Claimant has a “reasonable expectation” of Medicare enrollment within 30 months of settlement date.

What is a “reasonable expectation”?

· Claimant is receiving SSDIB

· Claimant has applied for SSDIB

· Claimant was denied SSDIB and intends to appeal or re-file

· Claimant is 62 1/2 years old

· Claimant has end stage renal disease

Class III

Claimant is under 62 ½ years old, the settlement amount is $250,000 or greater and

it is reasonably foreseeable that Claimant will receive medicare benefits for injuries

sustained.

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Three Reasons to Structure Your Attorney Fee

March 21, 2009 by Bill Tilley.

There are three main reasons why attorneys structure their fees:

i. To avoid a large tax liability in a single year.

ii. To spread payments over several years to assure that office expenses and payroll are covered.

iii. To use the structure as a retirement planning vehicle.

Deferring income for just a few years, allows the attorney to take advantage of more itemized deductions and to pay the maximum allowed into a retirement plan. The fees can be structured to provide a guaranteed stable stream of income. The income stream can be tailored to meet the individual requirements of the attorney. The attorney can get assured monthly income or to make sure there is extra money when taxes are due in April. This alleviates some of the stress of worrying about cash flow. Unlike other retirement concepts or plans, in a structured settlement, allocations do not have to be made for employees or co-workers. The attorney does not have to make contributions for employees or follow any restrictive allocation rules.

By structuring fees, the attorney has the opportunity:

i. to design the right income stream for the practice;

ii. to create additional retirement income; or

iii. to accommodate future needs

Download e-book: http://amicuscapitalservices.com/structured-attorneys-fees.html

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Use financial professionals

March 11, 2009 by Bill Tilley.

You should always have your client meet with and discuss their options with a financial planner and a plaintiffs loyal settlement broker in advance of settlement to ensure that they understand all of their options and have time to contemplate and plan their best course of action. Remember this may be the largerst and most important financial decision they will ever make that will impact their quality of life. It is helpful to provide the expert with all pertinant information including the life care plan if applicable. In some instances these are complex decisions and will require extra time to make a trully informed desicion. In these cases you should consider a Qualified Settlement Fund to preserve the plaintiffs tax benefits.  It is imperitive that you give the plaintiff acces to a Plaintiff loyal settlement broker to ensure that they receive the best possible outcome.

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More to Consider About Structured Settlements

March 5, 2009 by Bill Tilley.

A structured settlement is a great option for long-term viability, but it’s not an option for everyone. You must understand that once you agree to the settlement plan, you can’t change the terms of the structured settlement. Literally, you have to live with whatever you agree to. You cannot change it at some later date. A good settlement planner, loyal to you, the plaintiff, is vital to help negotiate structured settlement terms that meet your needs, such as protection from rising inflation. In situations where your life expectancy has significantly decreased, you may want a settlement that guarantees a minimum payment even if you die before the guarantee period expires. This allows you to protect your family or beneficiaries from being left without financial resources. Still, structured settlements are flexible in the beginning (during the negotiation period) and can be structured to meet many needs and life circumstances. When you discuss your needs with your family members, attorney and tax advisors, consider carefully how you expect to live your life with this disease or injury.

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Structuring Attorney Fees

March 4, 2009 by Bill Tilley.

Structured attorney fees are a tax-deferred alternative to receiving a lump-sum fee payment. By structuring fees, the attorney can receive the fee payments over time on a tax-deferred basis. The attorney pays taxes on the fees in the year(s) that payment is made. In a personal injury suit, the plaintiff, i.e. the injured party can opt for a structured settlement. A Structured Settlement is a means of settling a personal physical injury claim with a plan designed to meet the unique needs of the injured party. Instead of accepting a cash settlement in a single lump sum, the injured party will receive future periodic payments made through a Structured Settlement annuity. Any settlement in a personal injury suit will involve attorney fees. The attorney can opt to structure the payment of the attorney fees. The attorney can structure the fees even if the client chooses not to structure his settlement. If the attorney chooses to structure the fees, it must be done prior to or concurrent with the client’s original settlement. Attorney fee structuring can also be done for fees from cases based on claims of discrimination, sexual harassment, employment litigation, defamation, wrongful imprisonment, wrongful termination, other non-physical personal injuries including emotional distress, punitive damages, bad faith, breach of contract and construction defects, to name several.

Attorneys may want to structure their fees as part of their own income tax planning, financial planning, and estate planning, and even succession planning within their firms.

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Lawyers can Receive the Benefit of Leverage

March 1, 2009 by Bill Tilley.

If you use the profits from your cases — your own money — to finance your next case, you’re using after-tax dollars. The IRS sees that money as pure profit, but if you’re trapped in a cycle of continually tying up your income in the next case, it’s really operating capital that is not tax-deductible. A business loan not only breaks that cycle, but lowers your tax burden. That’s because loan payments are generally tax-deductible as a business expense, so you’re using before-tax dollars to fund your case. That translates to more profit for you to run and expand your business, invest elsewhere, or just to enjoy.

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