Financial Planning for Attorneys
Through personalized Attorney Settlement Consulting, we help attorneys evaluate fee planning strategies that align with their professional and personal goals.
What Is an Attorney Fee Deferral?
Attorney Fee Deferral allows attorneys to receive a portion or all of their earned fees through a scheduled payment arrangement rather than a single lump-sum payment at the time of settlement.
Through Structured Settlements for Attorneys, legal fees can be arranged into scheduled payments that provide consistent income over time. Careful planning and coordination help ensure the arrangement is established properly as part of the settlement process.
How an Attorney Fee Structure Works
Fee Deferral
Through Attorney Fee Deferral, attorneys can choose to receive all or a portion of their earned fees over time instead of taking the full amount at settlement.
Structured Payments
Using Structured Settlements for Attorneys, payments can be scheduled monthly, annually, or on specific future dates based on the attorney’s financial objectives.
Tax Treatment
As part of Attorney Settlement Consulting, attorneys can explore payment structures that may allow taxes to be paid as payments are received rather than on the entire fee upfront.
Long-Term Planning
Settlement Planning for Attorneys can help support cash flow management, income distribution, retirement planning, and other long-term financial goals.
Important Note
Our Litigation Support Services help ensure fee structure decisions are made before the settlement is finalized, as attorneys cannot structure fees after receiving or controlling the settlement funds.
Investment Options
Structured Settlement Annuity
As part of Structured Settlements for Attorneys, a structured settlement annuity provides scheduled payments over time rather than a lump sum. Payment schedules are established during settlement and can help create predictable income for future financial needs.
Structured Fixed Index Annuity
A structured fixed index annuity can be incorporated into Attorney Fee Deferral planning, offering growth opportunities linked to a market index while helping protect principal from market downturns. This option is often used for long-term income planning.
Structured Settlement Market-Based Investment
Through Settlement Planning for Attorneys, market-based investment options allow funds to participate directly in the financial markets. These strategies offer greater flexibility and growth potential while carrying a higher level of investment risk.
For more information, contact the experts at Gleason Settlements today.
Attorney Fee Deferral Illustration
| Investment Structure | Tax-Deferred Account |
After-Tax Brokerage Account (Initial Cash Payout) |
| Contingency Fee | $1,000,000 | $1,000,000 |
| Initial Taxes Paid | $0 | $0 |
| Starting Portfolio | $1,000,000 | $570,000 |
| After 20 years of 6% annualized growth | ||
| Additional Taxes Paid | - $1,075,907 | - $250,299 |
| Total Take Home Dollars (Net of Taxes) | $1,426,202 | $1,115,249 |
| Additional Dollars Created by Tax Deferral Program | + $310,953 | |
Why Do Attorneys Use Fee Structures?
Attorneys often use fee structures to:
Create predictable future income
Support retirement planning goals
Manage cash flow over time
Spread income across multiple years
Align payments with long-term financial objectives
Reduce exposure to market uncertainty through guaranteed payment options
How Can an Attorney Fee Deferral Support Long-Term Financial Planning?
A properly designed Attorney Fee Deferral strategy can help attorneys manage income, plan for retirement, and create a structured approach to future financial needs.
By receiving payments over time, attorneys may be able to align income with future goals while maintaining greater control over long-term financial planning.