Under Rule 5.4, which is an allowed exception to sharing legal fees with a nonlawyer?

Under Rule 5.4, which is an allowed exception to sharing legal fees with a nonlawyer?

• A. After the lawyer's death, to the lawyer's estate or to one or more specified persons.
• B. Purchase of the practice retirement plan.
• C. Court-awarded legal fees with a nonprofit organization that employed the lawyer in the matter.
• D. All of the above.

Answer: (D)

Rule 5.4 limits sharing legal fees with nonlawyers, but it provides a few specific exceptions to that prohibition. First, after the lawyer’s death, the remaining fees may be paid to the lawyer’s estate or to specified persons. Second, there is allowance for arrangements tied to the purchase of a law practice or to a legitimate retirement plan, which can involve a nonlawyer receiving a share as part of that structured plan or sale. Third, court-awarded legal fees may be allocated to a nonprofit organization that employed the lawyer in the matter. Because each of these situations is an approved exception, all of the above scenarios are permitted, making that option the correct choice.

Rule 5.4 limits sharing legal fees with nonlawyers, but it provides a few specific exceptions to that prohibition. First, after the lawyer’s death, the remaining fees may be paid to the lawyer’s estate or to specified persons. Second, there is allowance for arrangements tied to the purchase of a law practice or to a legitimate retirement plan, which can involve a nonlawyer receiving a share as part of that structured plan or sale. Third, court-awarded legal fees may be allocated to a nonprofit organization that employed the lawyer in the matter. Because each of these situations is an approved exception, all of the above scenarios are permitted, making that option the correct choice.