For Plaintiffs – Avoiding the Double Tax

FGI has partnered with Eastern Point Trust Company, a national-scope provider of specialized trust services, to develop a charitably-based trust that helps plaintiffs avoid the “plaintiff double tax.”
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Plaintiffs with taxable recoveries are often taxed unfairly:

• They pay tax on the whole recovery, including the attorney portion that they won’t keep.
• They can’t deduct that attorney portion, though their attorney will be taxed on it too.
• They pay tax at higher rates because they recover everything in one year (tax bunching).

Using a Plaintiff Recovery Trust (PRT) can avoid plaintiff taxation on the attorney fee portion. And it can be combined with any structured settlement program to avoid “tax bunching” by spreading receipt of the recovery over many years.
 
FGI makes this possible by participating in each PRT. And each PRT benefits FGI, increasing our ability to help plaintiffs around the country through charitable causes like the Plaintiff Fund.