Contingency agreement questions.

Ask the exact percentage and whether it changes at settlement, trial, or appeal; whether the fee is taken before or after expenses; what expenses you will owe and whether you owe them if you lose; who advances the costs; whether any fee is shared with another firm; and whether you will get a written statement at the end. Get every answer in the signed agreement. See the full vetting checklist.

Yes. Under the ABA Model Rules, a contingency fee agreement must be in a writing signed by the client, and it must state how the fee is determined, including the percentages and how expenses are handled. If a firm resists putting the terms in writing, that is a warning sign. Learn more about fees and contingency.

It depends on the agreement, which is exactly why the rules require it to say. Taking the percentage before expenses are subtracted generally leaves you with less than taking it after. Ask which method the firm uses and make sure the answer is written into the agreement. See the fee percentage guide.

It depends on the agreement, which must clearly state what you owe whether or not you win. Many nursing home firms work on a no-win, no-fee basis and advance the case costs, recovering them only from a successful result, but you should confirm this in writing rather than assume it. Read about no win, no fee.

Yes. Health coverage that paid for injury-related care, including Medicare and Medicaid, often must be reimbursed from a recovery before your family receives its share. These liens are separate from the attorney's fee and the case costs. See how Medicare liens work.

It can be. Where a recovery is taxable, the Supreme Court has held that the portion paid to the lawyer as a contingent fee is generally still counted as the client's income. Recoveries for physical injury are often excluded from income, so the treatment depends on your facts. We are not a tax advisor, so a tax professional should review your situation. See whether settlements are taxable.