Structuring Attorney Fees

Arcadia has received several private letter rulings from the Internal Revenue Service outlining the deferral of taxes on structured attorney fees. Arcadia’s expert team helps people structure their fees with experience, well-proven strategies, compassion and innovation. Structured attorney fees provide:

Stability and security: Structured fees allow attorneys to satisfy future financial and retirement planning needs; they ensure predictable cash flow despite fluctuating income and an unstable economic climate.

Tax benefits: Attorneys can avoid higher marginal tax brackets by structuring their fees. The money saved can then be invested with no money management fees. Payments are only taxed as the income is received, usually resulting in less taxation.

Higher payout: Tax obligations are spread over time and fees accrue compound interest on a pre-tax basis, so attorneys receive more income by structuring their fees than by accepting a lump sum payment.

Customizable income: Attorneys can accept all or a portion of fees in the form of periodic payments that are customized to meet their specific professional or personal goals.