Traditional Attorney Fee Structures
Attorney fee structures allow attorneys to defer income and taxation on the current year’s earned fees, while at the same time guaranteeing future income for retirement, children’s education, or other anticipated needs.
With traditional attorney fee structures, each payment is fixed and determined at the time the structure is established during the settlement. You can opt to defer all or part of your attorney’s fees and the annuity benefits can begin paying out whenever you choose.
Attorney fee structures allow the same tax-deferral benefits as a Qualified Pension Plan, but without any limitations on how much you can put in. In addition, spreading fees over several years avoids a higher tax bracket and allows the money saved in taxes to be invested at little or no risk with no money management fees.