Attorney Fee Structures
Schedule eligible contingent fees over time with a properly established attorney fee structure
ATTORNEY FEE PLANNINGAttorney Fee Structures Can Help Schedule Eligible Contingent Fees Over Time
An attorney fee structure may allow eligible contingent fees to be received through scheduled payments rather than as a single lump sum. The arrangement must be established before the settlement is finalized. Tax treatment depends on the specific facts, governing law, and documentation, so attorneys should consult their own tax and legal advisors.
A fee structure can create a scheduled stream of future payments that may help align income with recurring business expenses, education costs, retirement planning, or other anticipated needs. Available payment designs and ownership options depend on the selected product and case documentation.
Planning Flexibility for Eligible Contingent Fees
Evaluate payment timing, product features, and professional advice before making a decision.
Attorney fee structures may support cash-flow, tax, financial, and estate planning when they are properly established. An attorney may be able to structure all or part of an eligible fee even when the client does not choose a structured settlement. Product features, payment guarantees, index-linked interest potential, fees, limitations, and tax treatment vary. Review the applicable product materials and consult independent tax, legal, and financial advisors.
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Attorney Fee Structure FAQs
Common questions about timing, eligibility, and payment design
What is an attorney fee structure?
An attorney fee structure is an arrangement that schedules eligible contingent fee payments over time instead of paying the entire fee at once.
When must an attorney fee structure be established?
The arrangement generally must be documented before the settlement is finalized and before the attorney has an unrestricted right to receive the fee. Early planning is important.
Can an attorney structure a fee if the client takes a lump sum?
In some cases, an eligible attorney fee can be structured even when the client does not choose structured settlement payments. Eligibility depends on the case and documentation.
Are attorney fee structure payments tax-free?
No general tax-free promise applies. Tax treatment varies, and attorneys should obtain independent tax and legal advice regarding their specific situation.
Explore our resources for attorneys or contact the Independent Life team before settlement terms are finalized.
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Any discussion of taxes herein is for general informational purposes only and does not purport to be complete or cover every situation. Independent Life, its affiliates, its distributors, and its and their respective representatives do not provide tax, accounting, or legal advice. You should confer with your qualified legal, tax and accounting advisors based on your particular circumstances. All guarantees are obligations of Independent Life Insurance Company.