Thank you to Advocate Capital for publishing our guest post titled, “Guaranteed Future Income with Attorney Fee Deferment.” Below is an excerpt from the post.
If you’re an attorney working on a contingency basis, I do not need to tell you that cash flow isn’t always opportune, even when your firm is successfully resolving case after case. Receiving income sporadically can be nerve wracking when it comes to wealth management at home. Likewise, a sudden lump sum can send you into a higher income bracket, which means the IRS will take more of your hard-earned money at tax time. These issues might just feel like a product of your field of law. However, with a little planning, the influx of your fee income can actually be very calculated and controlled, allowing you to build wealth and enjoy outstanding tax-related advantages.
Some refer to this planning tool as an attorney fee deferral. For others, it’s a structured legal fee or deferred income. No matter its name, one fact remains true. The mechanism offers a solution exclusive to plaintiffs’ lawyers, so they may decide whether to receive some or all of their fee now or later.
A West Point graduate where he served as captain and military aviator, John Bair continues his commitment to our country through his efforts within the settlement planning industry. He has represented families of victims lost in the Flight 3407 crash, offered pro bono services to the families of 9/11 victims and drafted the first consumer protection bill for plaintiffs (H.R. 3699).