May a retired Missouri lawyer continue receiving fees earned before retirement, and may later payments go to heirs or a trust?

Plain-English summary

The lawyer expected future installment payments of fees for work already completed in permanent-total-disability or work-related-death cases and planned to retire.

Rules 4-1.5 and 4-5.4(a) permit continued receipt after retirement because the fees were earned beforehand. The conclusion is the same whether the lawyer keeps an active Category 1 license under Rule 6.01 or takes inactive status under Rule 6.03.

Rule 4-5.4(a)(1) permits an agreement with a firm, partner, or associate for payments over a reasonable period after the lawyer's death to the estate or specified persons. The opinion therefore allows future payments to heirs when substantive law permits, but does not decide the legal mechanism for directing payments to heirs or a trust.

In practice

Under this opinion, when the work was completed before retirement, later receipt does not become impermissible fee sharing merely because the lawyer is retired or inactive. Post-death directions remain subject to Rule 4-5.4(a)(1) and other law.

Common questions

Q: May the retired lawyer receive installments of fees earned before retirement?

A: Yes. The opinion permits continued payment of those earned fees.

Q: Does active or inactive license status change the answer?

A: No. The opinion reaches the same result under Category 1 active status and Rule 6.03 inactive status.

Q: May payments continue after the lawyer's death?

A: Rule 4-5.4(a)(1) permits an agreement for payment to the estate or specified persons over a reasonable period.

Q: Does the opinion decide how a trust or heir arrangement must be structured?

A: No. It leaves that substantive legal question outside the Rules of Professional Conduct.

Background and rules framework

Rules 4-1.5 and 4-5.4(a) govern earned fees and sharing with nonlawyers. Rule 4-5.4(a)(1) contains the post-death payment exception. Rules 6.01 and 6.03 define the active and inactive license statuses discussed.

Citations and references

Rules of Professional Conduct:

• Missouri Rules 4-1.5 and 4-5.4(a)(1)

Other authorities:

• Missouri Rules 6.01 and 6.03
• Missouri Informal Opinions 2010-0005, 20000195, 930079, 2022-02, 2020-02, and 2011-02

See also

• Missouri Informal Op. 2023-07: Closing a Trust Account at Retirement
• Missouri Informal Op. 2025-01: Retirement and Client Files
• Louisiana Ethics Op. 12-RPCC-018: Fees of Disciplined Lawyers

Source

• Landing page: Missouri Informal Opinion 2023-03

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Question: Lawyer receives payment of attorney fee for awards in permanent total disability cases or work-related death cases, and those fees are for work previously performed. Lawyer is considering retirement and asks if Lawyer may continue to receive those payments of attorney fees for work previously performed, and if those future attorney fee payments may be made to Lawyer’s heirs or a trust?

Answer: Based on Rules 4–1.5 and 4–5.4(a), if the fees were earned prior to Lawyer’s retirement, Lawyer may continue to receive those payments after retirement. See also Missouri Informal Opinions 2010–0005, 20000195, and 930079. This is true whether the Lawyer retires and remains on active status with a full Category 1 license pursuant to Rule 6.01, or inactive status pursuant to Rule 6.03. See also Informal Opinions 2022–02 and 2020–02. Rule 4–5.4(a) states that “[a] A lawyer or law firm shall not share legal fees with a nonlawyer, except that: (1) an agreement by a lawyer with the lawyer’s firm, partner, or associate may provide for the payment of money, over a reasonable period of time after the lawyer’s death, to the lawyer’s estate or to one or more specified persons….” In this scenario, future payments may be made to Lawyer’s heirs so long as it is permissible at law. This office cannot provide legal advice on the appropriate legal mechanisms to do so, as that is an issue outside the Rules of Professional Conduct. See also Informal Opinion 2011–02.