Plaintiff Recovery Trust
The plaintiff recovery trust increases the amount plaintiffs keep in taxable cases.
Without it, plaintiffs are taxed on proceeds paid to their lawyers. If their injury claim is owned by the Recovery Trust, they're not taxed on winnings paid out in legal fees. Instead, they pay tax only on the amount they keep, which can bridge the gap between legal fees and their net recovery, as shown below.
What types of Damages will benefit from the plaintiff recovery trust?
The Recovery Trust supports deferral arrangements of all kinds and durations. Once created, the Recovery Trust distributes ownership of your future payments.