Attorney feeSaver™
by
Elana Financial

Attorney Fee Deferrals

Attorney fee deferrals help plaintiff attorneys postpone receiving a portion of their contingency fees in order to reduce income taxes and build long-term wealth.

Maximize Your Earnings

For many plaintiff attorneys, successful cases can come with a price: a significant tax burden created by large lump sums. But with attorney fee deferrals, attorneys are able to defer a portion of their legal fees rather than taking immediate constructive receipt of the income, resulting in more predictable cash flow, reduce tax-rate spikes during high-income years, and support long-term financial planning goals.

Attorney feeSaver™ builds on traditional attorney fee deferral solutions by offering a more flexible and modern approach designed specifically for high-earning attorneys—so you can stop paying the lion's share to Uncle Sam.

Common Challenges Faced by Plaintiff Attorneys

Plaintiff attorneys often face unique financial challenges, especially when large settlements or verdicts yield substantial contingency fees. Common concerns include:

Significant tax liabilities during high-income years
Large lump-sum payouts may push attorneys into higher tax brackets and increase taxable income.
Limitations of traditional retirement tools
Options like 401(k)s and IRAs often have annual contribution caps and participation requirements.
Restricted access to deferred funds
Some traditional retirement accounts limit when and how funds can be accessed.
Limited flexibility in traditional attorney fee deferral strategies
Certain structured attorney fees may restrict distribution timing or growth opportunities.

Attorney Fee Deferral Strategies

Structured Settlement Annuities

A structured settlement annuity is one of the most common attorney fee deferral tools available to plaintiff attorneys. This arrangement allows attorneys to defer a portion of their fees before constructive receipt occurs. The deferred fees are then used to purchase a fixed annuity through a highly rated insurance company.

This is an appealing option to attorneys seeking predictable future income and conservative, long-term planning strategies.

Market-Based Performance Options

Some attorney fee deferral plans also include market-based performance options that allow attorneys to allocate deferred funds among investment-based strategies rather than a traditional fixed annuity, offering greater growth potential.

With market-based performance options, attorneys invest legal fees within the annuity structure, and future distributions depend on the performance of the investment.

Attorneys considering these strategies often work closely with a financial advisor to evaluate risk tolerance, liquidity needs, and long-term income goals.

Benefits

These traditional attorney fee deferral strategies do have benefits, including:

Immediate tax deferral of current income
Allows attorneys to postpone recognizing taxable income until distributions are received.
No tax-rate spikes from high-income years
Helps smooth out earnings over time and potentially avoid higher tax brackets after major settlements.
Tax-deferred growth
Deferred funds may continue growing over time without immediate taxation on earnings.
No need to wait until retirement to receive payments
Distribution schedules can often be customized based on personal financial goals.
No employee participation requirements
Unlike some traditional retirement plans, participation is not tied to firm-wide employee enrollment.
No contribution limits
Attorneys may defer larger portions of contingency fees compared to traditional retirement accounts.
No required minimum distributions (RMDs)
Unlike certain retirement accounts, there is no minimum withdrawal amount or mandatory age at which distributions must begin.

Limitations

But the strategies aren’t perfect. Traditional tax deferral tools come with the following limitations:

Taxes are deferred, but not eliminated
Income taxes will still be owed once distributions are received.
Distributions are eventually taxed as regular income
Future payments are generally taxed at ordinary income tax rates.
No death benefit
Some traditional structures may not provide benefits to heirs or beneficiaries.
Limited flexibility on the timing of distributions
Once the payment schedule is established, making changes may be difficult or restricted.

Introducing Attorney feeSaver: The Evolution of Attorney Fee Deferrals

Attorney feeSaver™ addresses the limitations of traditional attorney fee deferral structures, providing a more flexible planning solution specifically for high-income plaintiff attorneys.

We combined two long-standing strategies—standard fee deferral and standard tax-free compensation—to help trial attorneys build wealth and take control over their earnings and financial future.

How Attorney feeSaver™ Builds on Attorney Fee Deferral Strategies

How Attorney feeSaver™ compares to other options
Cash Out
$1,238,075
Deferred Only
(Fixed-Rate Return)
$2,040,071
Deferred Only
(Market-Based Performance)
$2,191,847
Attorney
feeSaver™
$10,130,066
$8,216,520
$790,573
$874,316
$939,963
$0 to minimal
Total Income After Taxes
Death Benefit at age 90
Lifetime Taxes Paid
I'm 40 Years Old
Average Annual Fees Deferred
$100,000
Total Fees Deferred (10 years)
$1,000,000
Begin Lifetime Income
Age 55
Assumed Death
Age 90
Attorney feeSaver™ Results
Death Benefit
$10,130,066
Assumed death at age 90
Annual Income After Taxes
$234,672
versus
Cash Out
$35,374
Deferred Only (Fixed-Rate Return)
$58,288
Deferred Only (Market-Based Performance)
$62,624
Compare this to the other options below!
Total After Tax Benefits
$18,346,586
Combined income + death benefit
See How it Works

Who Can Benefit from Attorney feeSaver™?

Attorney feeSaver™ may be an ideal solution for attorneys who meet the following criteria:

Annual income of $250,000 or more
Net worth of at least $2,500,000, including the value of a law firm
Equity ownership in a law firm or ownership of a corporate entity
Relatively good health and ability to qualify for underwriting or insurability requirements

High-earning plaintiff attorneys who regularly receive large contingency fees may particularly benefit from the flexibility and tax planning opportunities offered through Attorney feeSaver.

Schedule a Free Consultation

FAQs

An attorney fee deferral allows attorneys to reduce income taxes by postponing receiving a portion of their contingency fees before constructive receipt occurs. Instead of taking immediate payment, the deferred amount is placed into a structured arrangement that distributes payments over time, reducing taxable income and supporting long-term financial growth.

Structured settlement annuities typically provide guaranteed, scheduled payments through a fixed annuity issued by an insurance company. Market-based performance options allow deferred funds to be allocated among investment strategies that may offer greater growth potential but come with market risk.

Attorney fee deferral plans are commonly designed for plaintiff attorneys earning significant contingency fees. Qualification requirements vary, but high annual income, law firm ownership or equity participation, and good health are important considerations.

Attorney feeSaver™ combines standard fee deferral and standard tax-free compensation, expanding on traditional structured fee strategies to offer more flexibility, customized planning opportunities, and solutions designed specifically for the unique financial needs of high-income attorneys.

Could Attorney feeSaver™ Be a Game Changer for You?

Complete our brief pre-qualification form to see if you qualify.

Attorney feeSaver™ is not appropriate for every attorney. But for those who qualify, it can be a game changer.

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