Attorney Fee Structures

Attorneys are increasingly choosing to defer all or a portion of their fees to better manage their income, cash flow and taxes by using structured settlements. In some instances, the attorney fees can be structured even if their client chooses not to take a structured settlement.

Multiple Solutions to Fit the Attorney's Needs

Structured Settlement Annuity

Attorneys can defer their fees and defer taxes into the year(s) in which they receive each payment(s). Each payment is fixed and determined at the time the structure is established during the settlement. The funding vehicle is an annuity that is from a highly rated life insurance company.

Treasury Funded Structured Settlement (TFSS)

TFSS is similar to the structured settlement annuity, but it is funded with United States Treasuries rather than an annuity. This option is ideal for the attorney that wants to structure fees and defer the income and taxes but is looking for a funding vehicle backed by United States Treasuries.

Enhanced Attorney Fee Structure (EAFS)

EAFS is also a structured settlement, but it allows the attorney to invest the fee in one or several pre-selected Vanguard Life-Strategy Funds that are administered by Midwest Trust. This unique product allows attorneys to structure fees, defer income, defer taxes, and have the ability to potentially earn a higher rate of return in the market. This product is for the attorney who is looking for a potential higher internal rate of return and desires more control over how his/her money is invested. As with the other attorney fee products, EAFS allows attorneys to have 100% of their fee go into the investment on a pre-tax basis, allowing for greater tax-deferred growth.

Fee Structure Plus (FSP)

FSP is a similar product to EAFS in that it allows the attorney to invest their fee in something other than a traditional annuity or US Treasuries in order to attempt to realize a greater rate of return on their investment. With FSP, the attorney has the flexibility to allow the funds to be managed by their own personal financial advisor or by an established and reputable trust company that has been designated for the program. If you want your fees to be invested pursuant to a comprehensive investment plan as decided by you and/or your advisors, but on a fully tax deferred basis, the compounding opportunity provided by FSP cannot be beat!


Our attorney clients tell us they structured their fees into the future because they can...
  • Defer tax liability to years in which income is received
  • Satisfy future financial and estate planning goals
  • Normalize income over future years for better cash flow management
  • Secure periodic payments assured by highly-rated financial institutions
  • Depend on IFS to have access to every highly-rated financial product for structuring attorney fees

The Internal Revenue Service has issued a Field Service Memorandum that outlines the deferral of taxes on structured attorney fees. Recently, IFS obtained a Private Letter Ruling on Non-Qualified Assignments that holds attorney fee structures in a favorable light. We are happy to provide it upon request. In structuring your income, you will generally sign a Hold-Harmless Agreement and complete tax forms W-9 and W-4P. IFS consultants can provide fast service by supplying all the documentation needed, and we will ensure a seamless process.

Our consultants have created solutions for attorneys and law firms for decades. The experience of our nationwide network of consultants, combined with unparalleled customer service, has earned us our reputation as a trustworthy, well-informed partner with whom to do business. We are a proven resource to be used in your income management, planning and settlement activities.

Our consultants are extremely knowledgeable in developing structured attorney fee plans that meet the requirements of the settling parties and comply with the requirements of the proper fee structure tax planning thanks to their proprietary training programs and state-of-the-art resources. Visit EPS Settlements, SFA, Millennium, and JMW Settlements to learn more about the advantages of structuring your fees.

Integrated Financial Settlements (IFS) is the leading provider of structured settlement solutions in the United States with business written through EPS Settlements Group, Structured Financial Associates, Millennium Settlement Consulting and JMW Settlements. IFS, or any of its affiliates, does not provide advice or services related to the purchasing of, selling of or investing in securities or other financial instruments. Any discussion of securities contained herein is not intended or written to be used, and cannot be used, as advice related to the purchasing of, selling of or investing in securities or other financial instruments. IFS, or any of its affiliates, does not provide legal advice or legal services, nor does IFS, or any of its affiliates, provide tax advice or tax services. Any discussion of legal or tax matters contained herein is not intended or written to be used, and cannot be used, as legal advice or for avoiding any penalties that may be imposed under Federal tax laws. To ensure compliance with requirements imposed by the IRS under Circular 230, we inform you that any U.S. federal tax advice contained in this communication (including any attachments), unless otherwise specifically stated, was not intended or written to be used, and cannot be used, for the purpose of (1) avoiding penalties under the Internal Revenue Code or (2) promoting, marketing or recommending to another party any matters addressed herein.