by John Darer® CLU ChFC MSSC CeFT® RSP CLTC
What is Attorney Fee Deferral?
Attorney fee deferral is a financial planning strategy in which a lawyer or law firm’s contingency fees are paid over time based on an agreed schedule. Taxes are paid when payments are received.
An attorney fee deferral can be implemented through various methods, such as
- Structured attorney fees, funded by a fixed structured settlement annuity issued by a licensed insurer
- Structured attorney fees through with index linked periodic payments, issued by a licensed insurer. (1) Index Linked Structured Settlement | Prudential Income Advantage and (2) Pacific Life ILAPA and soon “Payout Plus” or (3) iStructure from Indepndent Life (not available in New York)
- Structured attorney fees through future payments
- Attorney fee deferral through deferred compensation program adapted for contingency fee lawyers using the same platform used by many Fortune 500 executives. that permits a market adjusted approach as well as unique flexibility and liquidity
- Fee Struture Plus,
Why Consider Attorney Fee Deferral?
- Stable income. income smoothing may be helpful to lawyers whose revenues are cyclical. Attorney fee deferrals through one or more of the above methods, can provide you with a predictable source of income either way.
- Supplement for your retirement plans. Attorney fee deferrals augment your retirement security, similar to traditional qualified retirement programs and IRAs, without contribution limits , or penalties if you receive payment prior to age 59 1/2 or after don’ take out enough after age 70 1/2.
- Core low risk base for your investment portfolio. Attorney Fee deferral funded with fixed annuities can serve as a component of the stable foundation that allows you to invest other funds in higher-risk investments.
- Save taxes now and make the money work for you during the time before it is paid out.
- Source of income for predictable future life events.
Further Information on Attorney Fee Deferrals
- Structured Attorney Fees and Attorney Fee Deferral Experts | 4structures.com LLC
- Are Attorney Fee Deferrals Addressed in Your Retainer Agreemement?