Attorney fee structure benefits include deferred income taxes, tax deferred earnings on interest, guaranteed income for the future, payment flexibility, creditor protection.

Advantages to Structuring Attorney Fees

Income Tax Deferral: The attorney is taxed only in the year when each periodic payment is received as set under the terms of the structure.

Tax Deferral on the Interest Earnings: The attorney fee structure also provides deferral of taxes on the interest earnings; therefore, investment growth is not taxable until the earnings are distributed.

Cash Flow Management: A fee structure provides a source of guaranteed future income.

Customized Income Stream: Attorney fee structures can help provide funding for:

Office expenses, payroll, other overhead, etc.
Retirement
Estate planning
Child’s college education
Alimony & child support
Long-term care needs
Other anticipated needs (i.e. paying off the mortgage on a home, purchasing a car, vacation, etc.)

Flexibility: The attorney can structure the entire fee or any percentage thereof; structure on a case-by-case basis; tailor the payment schedule to suit his/her personal needs and finances.

Possible Exemption from Creditors: A fee structure offers enhanced creditor and judgment protection.

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DISCLOSURE STATEMENT: Information contained herein is not intended or written to be used, and cannot be used, as legal advice or for the purpose of avoiding any tax penalties. This website is written to be educational in nature and support the promotion or marketing of the transactions or matters discussed. Please consult with an attorney or independent tax advisor as to how any of this information may apply to your specific circumstance.