Structuring Fees: The Latest Financial Planning Technique?
Although structured attorney fees do not have all the tax advantages of structured settlements for plaintiffs, there are still elements that make them attractive. Attorneys began using structured payments for legal fees in physical injury or sickness cases after the decision in Childs vs. Commissioner, 103 T.C. 634 (1994), affirmed 898 F3d 856 (1996). The Tax Court held that attorney fees from these types of cases could be received in periodic payments.