Under Rule 5.4, sharing legal fees with a nonlawyer is generally prohibited. Which of the following is an allowed exception?

Under Rule 5.4, sharing legal fees with a nonlawyer is generally prohibited. Which of the following is an allowed exception?

• A. After the lawyer's death, to the estate or specified persons.
• B. The retirement plan purchase.
• C. Court-awarded legal fees with nonprofit organization that employed the lawyer.
• D. All of the above.

Answer: (D)

Rule 5.4 bars a lawyer from sharing legal fees with a nonlawyer to protect the lawyer’s independent judgment. But there are recognized exceptions. First, when the lawyer dies, the portion of fees can go to the estate or to specified persons, rather than to a nonlawyer outside the estate. Second, a retirement plan may be the recipient of the fee-sharing arrangement—fees can be directed to a retirement or benefit plan as part of compensation for employees, without compromising the lawyer’s independence. Third, court-awarded fees may be shared with a nonprofit organization that employed the lawyer, so those awarded fees support the organization rather than benefiting a private nonlawyer. Taken together, these scenarios are all permitted exceptions, so all of the above is correct.

Rule 5.4 bars a lawyer from sharing legal fees with a nonlawyer to protect the lawyer’s independent judgment. But there are recognized exceptions. First, when the lawyer dies, the portion of fees can go to the estate or to specified persons, rather than to a nonlawyer outside the estate. Second, a retirement plan may be the recipient of the fee-sharing arrangement—fees can be directed to a retirement or benefit plan as part of compensation for employees, without compromising the lawyer’s independence. Third, court-awarded fees may be shared with a nonprofit organization that employed the lawyer, so those awarded fees support the organization rather than benefiting a private nonlawyer. Taken together, these scenarios are all permitted exceptions, so all of the above is correct.