Through fee deferral, you can receive your contingency fees as payments over time in a tailored schedule. Also called attorney fee structure, fee deferral is a smart investment option to manage wealth and plan for cash flow.
To defer a fee, you must not have constructive receipt of the money. As part of the settlement with the defendants and/or their insurers, your contingency fee must be a term of settlement that allows you to create a periodic payment obligation and defer some or all of your fee. The defendants/insurers would issue your fee payable to the selected assignment company. If a 468b qualified settlement fund (QSF) is established, your contingency fee must be a term of settlement that allows your fees to be payable into the QSF, which would then issue your deferred fee to the selected assignment company.
You can structure your fees even if you worked on a case with another attorney. Each attorney can decide whether to receive their portion of the fee in a lump sum or to defer into a unique payment schedule.
When YouStructure Your Attorney Fee:
You’ll only pay taxes on the payments you receive within the year. Meanwhile, the rest of your fee will grow, tax-deferred, in an investment portfolio.
Your investment-backed deferral plan will address both your short- and long-term financial goals.
Your fee deferral plan will work in lockstep with your existing investment portfolio.
There are no limits to how much or how little you defer.