Valdez Team
Attorney Fee Structured Deferrals

Structured Attorney Fees in San Diego, Los Angeles and Las Vegas, Nevada

3 Key Considerations before Structuring your Attorney Fees

Want to make the best out of your Attorney Fees?

Then you’re in the right place.

Below we will go over 3 key considerations you must keep in mind before moving forward with Structuring your Attorney Fees.

  • Make sure that the attorney elects to defer his/her fees before settlement.

  • By doing this, the attorney will avoid any constructive receipt issues – and in doing so, will have a peace of mind regarding any tax concerns. As the attorney, if you are thinking about structuring your fees on a case – you should stay ahead of settlement and make sure you bring this up.

    Tip: A great way to be proactive in this regard is to simply have, within your fee agreement, something of the nature saying that the attorney may receive his/her fee in cash or as periodic payments.

  • Pay special attention to how the attorney’s firm is arranged.

  • It is usually the case that structuring the attorney fees for solo practitioners is relatively simple. However, depending on if the attorney is a partner or not, if the firm is an S-Corp, LLP, etc. – there are further legal & tax matters to address.

  • Consider the choice that an attorney has in the vehicle that they decide to go with when structuring their attorney fees.

  • Traditionally, an Attorney Fee Structured Deferral would be placed via a fixed annuity product through a Life Insurance Company. However, with different products and providers out there – there is a market for alternative options, where trust & investment companies take the place of assignment/life insurance companies (discussed above). Because of this, attorneys now have the option of an Attorney Fee Structured Deferral that can either involve traditional life insurance products or a portfolio investment model that is tied to the market. Depending on one’s risk tolerance & goals, one option may be better than the other for a particular attorney. (See article # 2 for a case analysis).

    Utilizing Attorney Fee Structured Deferrals should be a no-brainer, tax-planning strategy for attorneys that are paid on a contingent-fee-basis.

    For more in-depth information on Structured Attorney Fees, visit our blog or contact us for a free consultation.

For more information on Structured Settlements contact us for a free consultation.

San Diego

402 West Broadway,
Suite 1720
San Diego, CA 92101

T: (619) 231-3334
F: (619) 231-3335

Los Angeles

660 S. Figueroa Street,
Suite 1290
Los Angeles, CA 90017

T: (213) 402-1334
F: (213) 402-1335

Las Vegas

3960 Howard Hughes Parkway,
Suite 420
Las Vegas, NV 89169

T: (702) 792-9900
F: (702) 792-9901

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