Elder Law Attorney Fees Explained
As the population ages, many are turning to elder law attorneys for specialized guidance and support in navigating their later years. With this comes the understanding that some lawyers may charge differently for the same services that others offer. Before starting a relationship with an attorney, it is always better to know ahead of time what type of fees you will be expected to pay — and why those fees are set the way they are. The following is a breakdown of some ways that elder law attorneys usually charge their clients.
Many elder law attorneys charge standard hourly rates for their services. Hourly rates vary by state or region, and by the experience and training that the lawyer has acquired throughout his or her career. An average hourly rate for an elder law attorney ranges between $150 and $300, depending on where you live and your particular situation. Whenever you call or meet with a lawyer, you’ll be charged at least a small amount of money per hour for their time. Elder law attorneys cannot charge more than one-half of the "usual and customary" fee for similar services in your state or locality. You are entitled to a written statement of their fee schedule, broken down by hours, minutes or other increments of time.
Most elder law attorneys offer free initial consultations, so you can learn up front whether or not the attorney offers the services you need and what the fee structure is for that particular firm. Standard consultations usually last no more than an hour, or an hour-and-a-half, depending on the complexity of the initial problem. After the initial consultation, the lawyer may charge for all time spent on your case, such as preparing documents, attending hearings, phone calls and other personal meetings.
Another common fee type is a "flat fee," for example money paid in advance for certain services or services performed over a particular time period. Flat fees depend on the type of service rendered. For example, the preparation of a living trust , a will or a power of attorney may cost anywhere from $1000 to $3000. Drafting a complex business succession plan might increase the fee to as high as $9000. Trust administration usually costs between $3000 and $5000. Finding a flat fee lawyer can actually be a good idea because it reduces the unpredictability of your legal fees. You know the cost of the services beforehand and the lawyer won’t have an excuse to bill you more if he or she goes over time projections and estimates. However, the problem with flat fees can be that the upfront payment is sometimes much more than you plan to pay for the scope of work, as it was described at the initial meeting.
Often, elder law attorneys work on a retainer basis with their clients. This means you pay for the lawyer’s services in advance. Usually when you intend to work closely with the lawyer over a protracted period of time, rather than on specific tasks or projects, a retainer is useful. The retainer is usually replenished at intervals, that is, when it has fallen below a certain level. Many lawyers charge an initial up-front retainer for their services, then continue to replenish the retainer periodically over the course of your relationship. A retainer may be either hourly or flat rate, depending on the complexity of your issues and the relationship with your lawyer.
Some elder law attorneys take cases on a contingency basis, like many personal injury lawyers. In these cases, the lawyer only earns fees if he or she obtains a financial recovery for you, for most types of claims. However, this type of fee arrangement is not permissible in Virginia and many other states for most types of work. For example, Virginia lawyers may not charge a contingency fee for wills, trusts, powers of attorney, and some forms of conservatorships. Although most elder law attorneys won’t work entirely on a contingency basis, they may work on a limited contingency, such as getting a portion of the recovery until the amount paid by the defendant exceeds your out-of-pocket damages for medical bills, lost wages or other costs.
Elder law attorneys, like most other businesses, need to charge for their work to feed their families and stay in business. However, some elder law attorneys are more concerned than others with making money, and they’re usually perfectly happy to sign a written fee agreement which spells out the services that they agree to provide and the agreed upon fees.
The Different Types of Elder Law Attorney Fee Structures
Elder law attorneys may bill by the hour, at a flat fee or percentage of money that is recovered, or they can charge a contingency fee. Some lawyers will actually utilize a hybrid of these methods in their billing. Whatever the method used, you should know how you will need to pay an elder law attorney for his or her services. For example, an hourly bill for an elder law attorney can be not only for time spent in office but time spent in trial, depositions, court appearances, settlement conferences and even for time spent driving to court appearances and conferences.
Flat fee arrangements mean that an elder law attorney sets a specific amount for the matter at hand, as agreed to by both parties. This amount will not change even if the matter ends up requiring more or less time than was originally anticipated. Many clients prefer flat fee arrangements because there are no ugly surprises at the end of a case.
Contingency fee arrangements are generally reserved for cases that involve the recovery of money. If your matter will involve real estate or investment disputes with substantial sums of money at stake then a contingency fee arrangement may be appropriate. With this type of payment arrangement, the attorney is paid a specific percentage of the money that is recovered from the matter if the case is successful. However, a contingency fee arrangement obligates the elder law attorney to front all of the costs of the legal action.
What are the Factors that Influence an Attorney Fee
The fees charged by an elder law attorney can be influenced by several factors. One of the most significant is the complexity of the particular matter involved. For example, a trust modification may involve relatively little attorney time as compared with a lengthy suit to challenge a guardian’s powers. A poorly-executed contest of a will may result in the estate administration taking much longer than intended and racking up a substantial attorney bill in the result. Even during a lengthy guardianship action, there are phases that may require more or less attorney time. Having an attorney at the hearing, as a general rule, is more expensive than filing papers and having no attorney at the hearing. The faster result usually ends up being more economical for all involved.
Of course, another consideration is the attorney’s experience level both in general and in terms of specific matters. Although all attorneys are required to take continuing legal education courses, there is always going to be a disparity from the newest attorney to the attorney with decades of experience. The truism "you get what you pay for" can certainly be true with attorney fees and elder law is a particularly intricate field, requiring numerous years of study and experience. Unique matters present unique challenges and require highly experienced faculty to achieve a desirable result.
Comparing Costs for Elder Law Attorneys
The costs for various elder law services can vary greatly, and understanding these expenses is crucial in determining the best approach for your legal needs. Consider only some of the most common elder law services and their associated price ranges.
Estate Planning Service Costs
At the front end, you may not be surprised to learn that the cost of basic estate planning is relatively low. You can expect to pay, on average, about $300 to $1,500 for a simple estate plan, including a will, financial and health care power of attorney, advance health care directive, and other essential documents. However, things get more complicated (and thus more expensive) with the particulars of your estate plan. For example, a more complex estate plan—which might include a trust, multiple real estate holdings, and additional financial instruments—will probably run you about $5,000 to $10,000, for an average of about $7,500. If you have even more assets, you can expect to pay $10,000 or more for an average rate on a complex estate plan.
Guardianship & Conservatorship Costs
Unfortunately, when a loved one has lost the ability to make sound decisions—or may have never been able to do so—it is often necessary to seek guardianship over the individual. This process generally costs $1,500 to $3,000 or more, depending on the complexity of the case, whether it is contested, and how many forms are required. It is also important to factor in the costs of a conservatorship when necessary, which is $2,500 to $4,000 or more, depending on how far you must go to obtain the conservatorship.
Medicaid Benefits Planning Costs
Though Medicaid benefits planning is often an hourly service billed at an average rate of between $150 and $300 per hour, a complete Medicaid benefit plan can range from $500 to $2,500 or more, depending on your state and the complexity of the plan. Of course, there are a number of things you can accomplish on your own, including filing for Social Security disability – something we’ll discuss in the next section.
In addition, the cost of hiring a probate attorney and administering an estate can run between $1,500 and $20,000. If there are disputes about the estate, the costs can well exceed that amount by thousands of dollars.
These fees should always be discussed with your attorney before beginning any legal representation. Which services you need and how long the attorney will spend on each is difficult to predict. Any reputable attorney will provide you with a fee schedule and at least an estimate of the costs associated with your case.
How You Can Make Elder Law Attorney Fees Work for You
It is critical to understand how your legal professional oversees fees. Regardless if the fee arrangement is hourly, flat fee or capped, you must know exactly what type of work is being charged. When paid hours are utilized by a legal professional, hourly invoices should be requested from the attorney’s office. We periodically receive requests for settlements of wills or trusts or to answer a question thus we will send a statement of our time (that is the professional fee) invested in the project. We have had requests for "tentative billing" for a future closing or simply revising documents. If you are being charged for professional time, this should be on the invoice unless the "tentative billing" includes an additional charge. If you have not been given an explanation of what work was performed when you paid the bill , we would recommend requesting an explanation.
Negotiating attorney fees is an important part of the attorney/client relationship and we find that the legal professional and the consumer rarely have any discussion about paying less or limiting the amount for services. An example might include your request that two wills be prepared for a specified amount regardless of whether it is one person or two persons. In negotiating payment, What that means is you are asking them to commit to a fee for the work that is to be performed. You may want to check with two or three legal professionals in your area to compare hourly fees and give the consumer some idea of the range of fees. There certainly seems to be an expectation or not understanding of what his/her work or time actually should be.
I have seen legal work not be charged at all simply because the legal professional saw the need and was willing to take the "bad" work out of the way or was a friend or relative. Be sure to find out what types of services the attorney has available for pro bono or reduced-fee.
Elder Law Questions Regarding Attorney Fees to Ask
The most crucial question to ask an elder law attorney before you hire them is about their fee schedule. How do you bill your clients? There is an industry standard for elder law attorneys that is either by the hour or a flat fee for specific services. You deserve to know how you will be billed from the outset. Reading the fine print of your consultation contract isn’t enough, you must ask your elder law attorney the following questions:
• What forms of payment do you accept?
• Do you charge fees for missed appointments?
• Do you charge clients for telephone conversations?
• How do you charge clients for e-mail communications?
• Are there any upfront fees?
• If so, what is the refund policy if the work outlined in the contract is not completed?
• Are there any additional services that are not covered in the contract?
• Does your rate increase as you progress through different tasks in a service that you provide?
If you think you are going to need other services from your elder law attorney, then ask he or she up front if those additional services will be included in your current contract or if you will be expected to pay for them separately. By asking and knowing how your elder law attorney charges their clients, you will avoid any surprise fees at the end of a long process, which is good for you and good for your elder law attorney. If you feel like you are at risk of being taken advantage of, then you should keep looking for someone you can trust. Unfortunately, the truth is that some unscrupulous elder law attorneys may quote one fee up front and then charge you unexpectedly as the matter progresses, so it is important for you to set boundaries early.
How does my elder law attorney fit into my current finances? If your elder law attorney doesn’t ask you about your current finances or what your financial situation will look like going forward then you may want to keep searching for a more ethical elder law attorney. If your lawyer doesn’t explain how their charges will fit into your monthly budget, then you need to do it yourself, because some elder law processes can break the bank. If your estate plan is in order and you have sufficient savings then fees may not be an issue. However, if you must spend all of your savings on care for you or your spouse, then perhaps you need to find a lawyer who is willing to draw up your papers and then wait until your estate has been settled to receive payment for their work. Hypothetically, if you have savings of less than $200,000 and you and your spouse need care averaging $10,000 a month, then it wouldn’t make sense for you to spend your life savings on paying your elder law attorney’s hourly fee for their work. If you need to spend all of your savings on care, then ask your elder law attorney if they are willing to wait to be paid until your estate has been settled.
Choosing An Elder Law Attorney
When seeking out an elder law attorney, it is important to ask a few key questions regarding experience and specialization in the field. For example, is this particular lawyer a member of the National Academy of Elder Law Attorneys? Has he or she published material in legal journals? Is he or she a trained mediator?
It is also important to spend some time speaking with the lawyer and getting a feel for his or her personality. Does he or she show genuine concern for elderly members of your family? Is he or she easily accessible when your family has a question or concern? Does the lawyer seem to care about your family’s needs and put your needs first?
Take a look online to read client reviews and have a look at the elder law attorney’s online profile before making a final decision. In addition , consult other professionals such as your financial advisor to get their recommendation for a quality elder law lawyer.
Another source of information about elder law attorneys can be through the local bar association. When looking for an elder law attorney, ask questions relating to the following factors:
While it is important to find an solid elder law lawyer for your family, determining whether or not you will actually need these services is equally important.