As is the case with many other sources of income, attorneys’ fees are subject to federal and state income taxes as well as employment taxes. Therefore, when an attorney receives his or her contingency fee from a client’s personal injury settlement or judgment, a substantial amount of that revenue can be taken by taxation.

This is where attorney fee structures come into play and make a significant difference. The structuring of attorneys’ fees was legally validated by the U.S. Court of Appeals for the Eleventh Circuit in a ruling made in 1996. Since that point, the knowledgeable settlement consultants at Quest Settlements have helped attorneys throughout Los Angeles County and San Diego County to successfully structure their contingency fee payments in order to defer income and associated taxation.

What Are Attorney Fee Structures?

Structured Attorney Fees in San Diego County and Los Angeles County from Quest Settlements

Structured attorneys’ fees enable attorneys to receive their contingency fee payments in fixed intervals rather than as one large lump sum. Attorneys can choose to defer some or all of their fees, and there is no cap on the amount of money that can be structured.

When the fee structure is established, the amount allocated to the structure is given to the annuity company, with any leftover funds given to the legal firm as per usual practice. With the fee structures, the attorneys only pay taxes on the income payments as they’re distributed. As a result of the taxation being on smaller periodic payments rather than on one sizable lump sum, the attorneys stand less of a chance of being placed in a higher tax bracket and end up saving money in taxes owed.

Types of Structured Attorneys’ Fees

Attorney Fee Deferral Structured Settlements in Los Angeles County and San Diego County from Quest Settlements

As leading providers of structured attorneys’ fees in Los Angeles and San Diego Counties, Quest Settlements offers multiple effective choices for attorneys. With a structured settlement annuity, payments are funded from a life insurance company annuity. The payment dates are fixed, and decided upon in advance when the structure is first created. In addition to coordinating with life insurance companies, Quest Settlements also offers attorneys government-backed Treasury Funded Structured Settlements™.

Besides these two standard fee structure options, Quest Settlements also offers the unique and highly-beneficial Fee Structure Plus®. A market-based & tax-deferred structure program that can potentially lead to great financial gains over time, Fee Structure Plus® is discretionary in the sense that it lets the attorney decide if the structure investments should be controlled by a financial advisor of his or her choice, or a designated trust company.

An Industry Leader in Fee Deferral Structured Settlements

Attorney Fee Deferral Structures for San Diego County and Los Angeles County Attorneys Provided by Quest Settlements

Quest Settlements is here to help attorneys with all of their fee deferral structured settlement needs. Our team advises attorneys on their fee structure choices, and comes up with a personalized plan to properly address each attorney’s particular financial requirements. Our goal is to help attorneys maximize their earnings from contingency fees so that ample money is available to handle both current and future expenses.

If you’re an attorney interested in fee structures, please give us a call now at (805) 823-6100 for our Los Angeles County office or (619) 391-2578 for our San Diego County office. We will answer any questions you have, and ensure that your structure is established the way you need it to be. We look forward to hearing from you.

For Structured Attorney Fees, Contact Quest Settlements Today at (877) 832-3005

For Structured Attorney Fees, Contact Quest Settlements Today at (877) 832-3005