Structured Legal Fees
What Are Structured Legal Fees?
Structured legal fees allow attorneys to defer income taxes on fees earned from contingency cases by receiving those fees over time, rather than in a lump sum. This creates an opportunity for tax deferral, long-term financial planning, and asset protection — without requiring a traditional retirement plan.
Instead of taking your full fee in one high-tax year, you can choose to receive predictable payments over time, with fixed or market-linked returns, while controlling the timing, structure, and tax impact of your income.
Why Structured Legal Fees Make Sense
Most attorneys spend their careers putting clients first — but when it comes to personal financial planning, many fail to take advantage of tools that reduce tax burdens and create long-term stability.
Here is how structured legal fees benefit you:
✔️ Significant Tax Deferral
Defer income taxes until payments are actually received. Spread income over future years to avoid being taxed in the highest brackets all at once.
✔️ Customized Cash Flow Planning
Design your payout schedule to align with your needs: monthly, annually, or deferred until retirement. You control the timing.
✔️ Market Protection or Growth Potential
Choose between guaranteed fixed-rate annuities or market-linked options that allow for long-term asset growth — without direct market exposure.
✔️ Built-In Discipline & Security
Receive steady payments over time, removing the temptation to overspend after a large case. Ideal for long-term planning, retirement prep, or funding future law firm operations.
✔️ No Annual Limits or ERISA Rules
Unlike traditional retirement plans, structured legal fees have no contribution caps, no age restrictions, and no ongoing compliance burden.
Who Should Consider Structured Legal Fees?
Structured legal fees are ideal for:
Trial lawyers with large or irregular case settlements
Partners in contingency-fee firms seeking predictable income
Attorneys planning for retirement or future firm transitions
Lawyers facing a large tax bill from a multi-year case
Firms wanting to reduce the volatility of cash flow
If you are earning contingency-based fees and not using this strategy you may be missing one of the smartest ways to secure your financial future.
Our Approach at Wahlstrom & Associates
Our team brings decades of experience helping attorneys implement structured fee strategies tailored to their goals. We work independently, offering objective advice not one-size-fits-all solutions.
Through our Attorney Asset Protection Program, we create custom legal fee structures that integrate:
Fixed and indexed annuity options
Long-term wealth planning
Taxable and tax-deferred strategies
Trust and entity integration
Optional lending and liquidity support
Helping trial lawyers across the country lower their tax liabilities, preserve wealth, and gain long-term financial peace of mind.