Deferred-Taxation for Attorneys
A tailored fee structure can help attorneys lower their tax obligation each year. Regardless of whether a plaintiff chooses to use a structured settlement option for their case proceeds, an attorney can still opt to defer their fees if it is included in the settlement agreement.
Deferring fees can not only help you to cushion your retirement plan but can also be used as a fixed income annuity. This means that you would only report the income on years when payments are received, ideally during times when you have less revenue coming in from your practice. Deferred taxation strategies are flexible and can be personalized to meet your specific financial needs, now and in the future.
Paramount is not only a nationally recognized advocate for plaintiffs; we can also be an essential resource for you and your law firm. Structuring attorney fees has several advantages but should be done by a licensed financial advisor who understands the tax implications and can help to limit your liability. Our knowledgeable team members have extensive experience working with attorneys to develop a fee structure that benefits them throughout their lifetime.
Learn more about how structuring attorney fees can:
- Help you to avoid being moved into a higher tax bracket during a given year.
- Provide flexibility based on your individual needs and goals.
- Establish a secure financial future for you and your family.
- Create stability and help you to manage fluctuations in your income.
- Keep more money in your pocket long after a case settles.