Attorney Fee Deferral Strategies

Ohio, Michigan, & Nationwide

As a plaintiff’s attorney, you can place your contingency fees in many kinds of investments, some with tax advantages. At CW Settlements, we can employ a variety of Ohio and Michigan attorney fee deferral strategies. Connect with our team to discuss your available options.

Ohio and Michigan Attorney Fee Deferral Strategies for Attorneys

U.S. companies compensated victims $40 billion in 2024, which included attorneys’ fees. When you win a case, you can put your contingency fees, or only a portion, into different tax-advantaged investments using attorney fee deferral strategies. You can choose from structured or non-structured annuity options.

Structured Attorney Fees

With this option, attorney’s fees flow through a third-party assignment company, which uses fees to buy a fixed annuity. This can manage payments based on your prearranged payment schedule. Payments can be electronically deposited into your predetermined bank account and reported only during the years when payment is received. With this method, more money stays in an attorney’s pocket, and there is room for flexibility in payment schedules.

Non-Fixed Annuity Options

You also have the option of using non-fixed annuities, including:

• Fee Structure Plus®. This option allows a lawyer to invest their contingency fee through a market-related portfolio, allowing for tax deferral. The funds may be managed by someone you select, and payments are made using a prearranged payment schedule. Taxes are a consideration for the years when funds are received.

• Treasury Funded Structured Settlement™ (TFSS). This option is backed by the federal government. It relies on treasury bonds as the foundational investment. Attorneys may place their contingency fees in a TFSS, which provides another dependable fee deferral choice.

Depending upon which non-fixed option is utilized, investment minimums vary, and attorneys may face costs for setup and/or annual administration fees. Nevertheless, these options typically provide greater growth opportunities when compared with structured attorney fees, all while still providing lawyers with guaranteed income. Connect with a structured settlement consultant at CW Settlements to go over your available annuity options.

Federal Tax Guidance for Attorney Contingency Fees

For federal tax purposes, a structured settlement consultant can help attorneys by creating a fee deferral plan that allows them to receive their contingency fees over time. Typically, this can minimize immediate tax burdens and provide a steady, predictable income stream. By working with a consultant like those at CW Settlements, attorneys can structure payments to match their financial goals. They can also make sure the arrangement is legally sound and compliant with IRS regulations.

As a result, it’s worth seeing a structured settlement consultant early in the litigation process. That way, they can plan for any tax implications and explore all annuity options.

Why Choose CW Settlements?

At CW Settlements, we have decades of experience in helping attorneys achieve their financial goals. If you routinely receive contingency fees, we can make sure your agreements are compliant with federal regulations. Our team can also meet both your current and future financial goals. As a full-service firm, we can protect your payment stream and avoid preventable errors.

Learn Attorney Fee Deferral Strategies From CW Settlements If you need to learn attorney fee deferral strategies, contact CW Settlements today. We are seasoned consultants who provide individualized assistance to attorneys from a range of firm sizes.