What Are Elder Law Attorney Fees?
Elder law attorney fees, like fees for many other types of legal services, can vary from provider to provider. It is rare for any attorney to publish their fees on their website, but a clear understanding of the methods used is critical to get the most from your relationship with your attorney.
Below are some fees that are common to elder law services and their typical uses:
Hourly Fees – This is probably the most straight-forward type of fee. The amount of an attorney’s hourly fee reflects their experience, the complexity of the services provided, and often the amount of overhead for the firm.
The fees are usually broken down into increments of time, such as 1/10 of an hour (6 minutes). While a detailed time charge for 1/10 of an hour is common , many attorneys charge a flat fee for phone calls, allowing you to fully discuss a matter without fear of racking up charges for each minute of conversation.
Retainer – While not a flat fee, a retainer is a pre-payment for future legal services. The lawyer will bill their time against the retainer until it is exhausted, at which point you may either replenish the retainer or pay on an hourly basis. Retainers are commonly used when the attorney must conduct additional research into a complex matter.
Flat Fees – These types of fees are determined in advance and are charged for a clearly-defined service. An example of a flat fee for an elder law attorney would be preparing a basic estate plan, such as a will, financial power of attorney, and health care directive.
Factors That Influence Elder Law Attorney Fees
Elder law attorney fees do not usually have a fee schedule published as do other legal specialties (like bankruptcy, DUI, will & probate, immigration and so on), however, as you probably have noticed, the hourly rates for these lawyers and their attorneys are often on the high side. Why is this? Is an elder law attorney smarter or more experienced than a real estate lawyer or bankruptcy lawyer? Well, for one, many times "experience" is not the reason for the higher fees, rather the "area" of law requires specialized knowledge, whether it be estate planning, medicaid planning or guardianship, that most other lawyers do not have. That being said, when an attorney’s fee far exceeds the hourly rate, the area of law being practiced may be more complex than what is offered in other areas of law, like bankruptcy or DUI law.
WHAT ARE THE FACTORS THAT AFFECT ELDER LAW ATTORNEY FEES?
Here is a quick breakdown of some of the factors that may affect how much an elder law attorney charges:
- Complexity of the Case – elder law involves complex and intricate areas of the law. While it may seem simple on the surface, underlying issues may arise that require specific knowledge or experience with government programs like Medicaid or social security benefits, or long-term care laws or other "elder based" laws that an attorney will be required to have experience with. Some times a simple situation that may seem to a family like they can go to any lawyer and have a simple estate plan or Medicaid plan quickly put together actually takes weeks or months to do. An experienced elder law attorney will not only be able to spot the issues, but will be able "to advise" where the planning becomes complex so that he or she may handle the matter properly for the client. An elder law attorney will quickly be able to "gauge" how complex a situation is, and will give a good estimate by the first consultation, without having to put the client through a series of work-ups and phone calls in order to determine how complex the situation is (which will usually translate to higher fees due to the time spent to do the follow-up work and make phone calls on the client’s behalf). Repeated calls and follow-ups on paperwork cause the cost of the planning to go up, so more complicated the case, more phone calls, and more the cost – that is just the way it is.
- Experience – while an experienced Medicaid attorney or guardianship attorney may charge more than a lawyer who does not specialize in elder law, the work is usually completed quickly and efficiently. An elder law attorney with experience in this area is able to get right to the issues without unnecessary delays and work-up that can be time consuming. Experienced lawyers are also more likely to understand the systems and bureaucracy involved with certain government agencies like Guardianship Court, Medicaid, Medicare and Social Security, and therefore are able to expedite matters which may require numerous unruly phone calls to get a simple matter resolved.
- Location – in some areas of the country, "fees" vary, and some attorneys may charge a retainer and/or flat fee for estate planning work. Depending on the State, the fee may or may not include ancillary work such as filing and recording fees, document delivery, phone calls and time spent on follow-up with other parties or agencies (such as Social Security, Medicare or Medicaid). Some may choose to bill this ancillary work while others may not charge for it. Other attorneys work on a retainer basis and charge a flat fee to their clients for a specified project and do not charge for follow-up work. This will also depend on the "area of law" being practiced. Real Estate lawyers may charge a flat fee, while an elder law attorney with varied areas of practice may choose not to charge a flat fee and instead choose to bill by the hour.
- Fees v. Costs – an elder law attorney may charge a fee for their work, but this may not always include costs. What does this mean? This means that the elder law attorney may charge a fee for their work and not include related costs that may occur in order to complete that particular task. Costs are separate from fees and include costs for postage, filing fees, service of process fees (for litigation matters), recording fees, court fees, long-distance phone charges, faxing documents, periodic status reports, etc. Costs can be substantial and should really be considered separately from the ‘fee’ charged. As always, it is best to get an outline of the method of billing and what is and is not included in the attorney’s fees.
Common Fee Types Among Elder Law Attorneys
Common fee structures used by elder law attorneys include hourly fees, flat fees and retainer arrangements. In either case, the key is knowing how and when you will be billed. An hourly fee is often charged for initial consultations. A fee might be charged for "legal work" and another fee might apply to "client contact", which can include the attorney’s or assistant’s time spent on phone calls and letters. Some work is billed based on task, such as drafting a power of attorney or filing an application with the Veterans Administration.
Flat fees are possible for certain tasks such as preparing a will or a simple trust. Retainer arrangements are potential for ongoing representation for a period of time, such as where the fees become due at the end of a month. Others have programs where an initial retainer fee is set aside at the beginning of the relationship and applications as the work progresses.
Ask the attorney what is included in the fee and how additional work, if any, would be charged.
How to Estimate and Budget for Elder Law Attorney Fees
One way to estimate costs of hiring an elder law attorney is to request a price ranging for your services. This should include a specific range for the services to be provided as well as an anticipated maximum amount that would be charged if the services run very long. The bottom of the range should be based on the estimated timing and number of hours the matter requires and should be in line with published regional, state and national fees for similar types of services. You should ask the elder law attorney to explain how the estimated costs were calculated and the factors that could affect them. This is also a good opportunity to ask questions about the basis of the ranges provided, so you can help you better understand the professional fees.
Unfortunately, elder law clients do not often understand potential costs associated with services when they hire an elder law attorney. Therefore, clients have little or no budget to work with when they hire an attorney. I advise clients to have an idea of the maximum amount they think they may need to budget for a specific service. Otherwise, be prepared to be shocked when you receive a bill for unexpected and unanticipated services.
Ways to Reduce and Manage Elder Law Attorney Fees
A few of the ways to manage and potentially reduce your legal costs include:
Hourly Rates – In the event we are unable to establish a fixed or flat fee based on your needs, the alternative is an hourly rate that is charged for each hour or portion thereof. This charge applies to all attorneys involved in the project you have requested. As a general rule, attorney fees are charged for this work in fifteen or thirty minute intervals. Costs and expenses incurred on your behalf may include: travel, telephone calls, faxing, postage, copying, court filing fees, filing fees with government agencies, and other miscellaneous costs. An office services fee is charged for the following tasks: preparing and sending all correspondence, photocopying or printing, scanning, faxing, receiving and/or transcribing messages and digital dictation, and typing/transcription.
Flat Fees – A flat or fixed fee may be quoted or offered for some, but not necessarily all legal services you are obtaining from us . For example, your elder law attorney may agree to provide a set of documents for a particular project, such as preparation of a will or trust. This does not generally include follow up work or revisions. An example of a flat fee, however, would be for estate planning because it is typically charged as one package.
Fee Retainer – The fee retainer is used against the bills that accumulate while a matter is in progress. The money remaining after payment of the final bill is promptly refunded to the client. A retainer of less than $1,000 is not held in a separate trust account. Retainers of $1,000 or more are held in a separate trust account as required by the Rules of Professional Conduct of the State Bar of Texas. These funds are not available to pay filing fees, cost bonds, or other costs and expenses without prior approval. Once a matter is concluded, the remainder of the retainer is refunded to the client.
Questions to Consider Asking Your Elder Law Attorney About Fees
Before you make a decision and hire an elder law attorney, it is important to ask questions to understand how their fees are structured and to determine whether the firm you are hiring is right for you. In elder law, you do not just sign up with an attorney and pay a retainer. As your life situation changes, you need to have a firm understanding about how the firm gets paid, especially for any additional services that may be needed in the future. Generally, your attorney should offer a free consultation so that you can go to the meeting with a set of questions prepared. Here are some questions to consider asking:
● What is your initial consultation fee?
● If I want to bring my spouse to the initial consultation, what will the fee be?
● If I need to call to discuss an urgent issue, will there be a charge for that call?
● If I need to review any additional documents, will there be a charge?
● How much will the preparation of new documents be?
● How much will change to existing documents be?
● How will I be charged for document review with other professionals (i.e. CPA, investment advisor)?
● In the event that we need to go to court, what will the fee be for the hearing?
● If additional appearances are needed, what will they cost?
● How do you determine the filing fee for a court application?
● If your office has to file any pleadings, will I be charged?
● If you need to copy original documents for the court, will I be charged for copies?
● Do you charge for any tasks performed by paralegals as well as attorneys (i.e. phone calls, document prep, etc.)?
● Is everything billed on an hourly basis or are there flat fees for any type of services?
● If I decide to change attorneys and need copies of my documents, will I be charged for copying?
By asking questions about the attorney’s fee structure, you will get a better idea of how the firm operates and whether it will work for you in the future.
Free & Low-Cost Legal Aid for Elder Law
It is important to note that there are legal aid services available for most or all jurisdictions that can be accessed by those who qualify and may also provide assistance in the areas of elder law, probate, estate planning, guardianship, and so forth. In addition , many state bar associations have committees on elder law which work to develop alternate sources for elder law services. There may be clinics with volunteer attorneys, or free legal advice hotlines for specific issues. Finally, universities and colleges will often host a pro bono or low cost legal clinic to provide basic estate planning procedures.