Section 61(a) of the Code and the Income Tax regulations thereunder provide that, except as otherwise provided by law, gross income means all income from whatever source derived.
Tax Deferral
Increasingly, attorneys are discovering the advantages of having their fees structured. The ability to determine when in the future to receive the payments and in what amounts,, the avoidance of a large tax liability at time of settlement and the tax deferral aspects of structuring have become of significant interest in the legal community.
Capital Gains Taxes
Generally, income generated is FULLY TAXABLE (except some income from tax-free municipal bonds). Capital gains taxes may apply when securities are sold.
Joe Hadus’ qualifications include twenty nine years experience in Structured Settlements. He has what could be described as the ideal background for Structured Settlements, having had extensive experience in financial planning and casualty claims. He began his insurance career in 1966 with the Security Insurance Group of Hartford. Progressing to the position of casualty claims supervisor, he left in 1970 to form Comprehensive Claims Service of Michigan, an independent adjusting company which conducted investigations in personal injury claims, with a particular emphasis on medical malpractice. Following this, he spent three years as a financial planning/annuity specialist with Massachusetts Life Insurance Company. He began his career in Structured Settlements in 1979 as the co-founder and President of a major Midwestern based settlement company. He founded J. Hadus & Associates in 1989. His area of expertise is in the settling of serious, often catastrophic cases, frequently involving intense negotiations. Considered among the top settlement specialists in the country, he has structured out in excess of 2000 cases, while supervising the file on several hundred more. More recently, Mr. Hadus has developed a practice in the use of Structured Settlements within Medicare Set Asides in order to meet government requirements in liability cases within the Medicare Secondary Payer Act. In October, 2008 Mr. Hadus did a presentation on The Use of Structured Settlements Within the New Medicare Reporting Regulations for Liability Cases to the American Association of Railroads, General Claims Conference Annual Convention in Vancouver, Canada. Joe also recently participated as a panel member during a seminar on Medicare hosted by a national law firm in Cleveland. He has conducted over 100 seminars/presentations throughout the United States on Structured Settlements, has an ongoing column in The Detroit Legal News and has been published extensively. (See Publications Section in this web site).
Annuities
In 1980, we pioneered the use of annuities to successfully settle both FELA and crossing accidents and have structured out hundreds of railroad cases since then.