The terms of the structured fee agreement, including the amount and frequency of payments, are agreed upon between the attorney, the defendant, and the insurance company within the settlement documents.

Payments under a structured attorney fee agreement may be received on a periodic basis, such as monthly or annually, or in a lump sum. The timing and amount of payments are determined by the terms of the agreement and may be subject to various restrictions, such as minimum and maximum payment amounts, or payment duration. You can elect to begin receiving payments immediately or beginning at a later date.

The income received under a structured attorney fee agreement is reported on your tax return as ordinary income in the year it is received. The net result is pre-tax growth of your deferred fee.