Settlement on the Horizon… Consider Your Options

As your case nears settlement, it’s time to consider how you want to take your fees.

Until now, you have focused exclusively on a favorable resolution for your client.  Now it’s time to focus on how to maximize your hard earned fees.  If you anticipate having taxable income this year, you may want to consider taking advantage of the tax deferral strategies available to you.


Initial Consultation with Brook-Hollow

The more information we know, the better.

In order to help, we need to know your complete financial picture. Every transaction is a little different based on the information we receive from you. We want to know about current debt, future plans, and everything in between.


Select an Investment Timeframe

One of your key decisions is when to receive your fees in the future.

You are only limited by your imagination. Do you want all of your fees invested for 20 years, with a lump sum payout at the end? Or, do you want your fees invested for 10 years, followed by distributions over the next 5? The payout timeframe is up to you. Consider how you want to use the income and whether you want the option of combining your deferral with a Brook-Hollow Capital line of credit.


Select a Money Manager and Investment Portfolio

We leave the money management to the smart folks.

We don’t manage your money, but we’ve partnered with some of the top wealth managers in the world. They have conducted significant due diligence efforts on our solutions varying in length from several months to one year. Your investment strategy culminates into in the Investment Policy Statement, which becomes part of the deferral contract and serves as the “playbook” for the money managers.


Closing Documents are Prepared

The deferral paperwork is prepared for review and execution.

We will prepare the necessary paperwork, to include the Non-Qualified Assignment and Release, Investment Policy Statement, and other key documents. Together, these documents establish your right to receive future payments from the deferral account, and dictate what happens to the funds during the investment period.


Deferral Transaction is Finalized

After all the documents are executed, the deferral account is funded.

Once all the documents are executed, the funds are wired to the Kenmare Assignment Company Limited. The funds are then deposited with a U.S. based custodian. The money manager you selected takes over management of funds in accordance with the Investment Policy Statement, and you receive distributions at pre-determined intervals. Your tax obligation is triggered upon receipt of each deferral distribution.


Brook-Hollow Capital…Line of Credit.

At the time of closing your deferral transaction, you can also establish a line of credit…further leveraging the power of deferral.

The basic concept is this: you now have a significant asset invested and growing tax-deferred in order to fund future payments to you. In the meantime, Brook-Hollow Capital may offer you a line of credit in a separate transaction whereby you can borrow 80% or more of the value of the deferral account. With net interest rates under of 3% fixed, you can’t find a better way to access cash should you need it to invest in more cases, cover overhead, distribute to partners, or anything else that might pop up. Simply put, you “Become Your Own Bank”.