Legal Fees
The number one question we receive from callers to our law firm, is “how much will this cost me?” Well, that depends! To understand your potential cost, you first need to know how lawyers are allowed to ethically charge their fees to a client. What you pay depends on the type of legal matter you have, and how the lawyer charges you for the time they spend on your case.
Lawyers have 3 different ways they can ethically bill a client: (1) bill the client by the hour “the billable-hour fee”; (2) bill the client by the project, called a “fixed fee” or “flat fee”; and (3) bill the client only when they “win” your case, or a “contingency fee”. Read more about the pros and cons of each fee type below:
This is the most common way lawyers charge clients for their fees when working on their legal matter. The law firm bills an hourly rate for each staff member working on the client’s case. The lawyer and client agree on these hourly rates before the representation begins. Time spent on your legal matter is often billed to you in tenth or quarter hour increments (for example, the minimum billed amount of time is 6 minutes when billing a tenth of an hour, and 15 minutes when billing a quarter of an hour). Most lawyers will require a deposit or “advance” from the client for the estimated fees and costs of the case that the law firm will bill against.
When a lawyer uses the billable-hour fee, the client should ask the lawyer to estimate the number of hours needed to complete the legal matter. That way, the client has some idea of what they can expect to spend, “all in”.
Lawyers also bill court and other costs separately, and may ask for these estimated costs up front as part of the deposit. Ask the lawyer to advise you on all estimated costs for your legal matter.
Lawyers who take an “advance” or deposit from a client must deposit these “unearned” funds into a client trust account that is monitored by the state bar or other licensing board. In Texas, we call this an IOLTA. A lawyer must account to their client for how the deposit is spent. This is usually done by sending the client a detailed invoice with a breakdown of their time and expenses. Some lawyers may send invoices more frequently while the legal matter is “active”. This helps the client understand how quickly the deposit is being spent.
PRO: The client pays only for the time the lawyer and their staff actually spent on the case. If the lawyer is efficient with their time, or the client’s legal matter is simple, the client pockets the savings!
CON: When a legal matter is contested, it is often difficult for a lawyer to estimate total fees and expenses. Fees and costs can quickly increase based on the complexity and direction of the legal case, especially when there are multiple parties fighting. In this situation, the client has no certainty concerning the total cost of their case. They may need to settle sooner, or for less than what they originally wanted. Sometimes, the client may have to drop their claims entirely if the legal fees and costs outweigh the benefits of the contested litigation. It’s important to research your legal matter, and the reputation of the attorney you hire for a contested legal matter.
The attorney charges one fee that often covers both their time, their staff’s time, and sometimes the estimated costs for the entire legal matter. This fee may be billed and collected up front, or billed to the client in installment payments.
In Texas, if the lawyer collects the entire fee up front, they must explain to the client at what point during the representation that the fee is “earned” by the lawyer. For example, a lawyer may bill a fixed amount at a certain stage of the legal representation, much like a contractor would bill at a certain stage of a renovation or building project. Any “unearned” flat fee or fixed fee amount that is collected up front, must be deposited to the client trust account (IOLTA).
PRO: The client knows up front, exactly how much their legal matter will cost.
CON: Lawyers who bill a case as a flat fee or fixed fee are generally charging you the average cost of what it takes them to complete a particular type of legal matter, plus a profit allowance. This means that if the lawyer is efficient with their time, or if the client’s matter is “easy” to complete, the Lawyer pockets the savings, not the client.
Although fixed fees may be tempting for an uncontested court matter, consider whether your case really is "easy", and request a billable hour fee instead. Additionally, if the flat fee is low or very discounted, the services you get may not include much time with the lawyer, outside of their appearance in court. You may be speaking only with law firm staff like legal assistants or paralegals. Ask how many hours of time you will get to spend with your lawyer for the “flat” fee you are paying.
In a contingency fee arrangement, the client does not pay any legal fees up front. Instead, the lawyer is paid only if they “win” the client’s case. The lawyer’s fee is generally a percentage of the settlement amount and the lawyer and client agree on the percentage before the representation begins. The lawyer’s fee is generally deducted and paid out of the settlement funds. The lawyer may charge the client separately, for any court or other costs incurred during the representation. Examples of legal matters where lawyers in Texas may charge a contingency fee: personal injury, contested probates (Will contests and other fiduciary litigation), and Social Security disability cases, to name a few.
PRO: The client does not have to pay any legal fees up front, and does not owe any legal fees if they “lose” the case either. Because lawyers who take certain cases on a contingency fee do not charge any fees up front, they will offer “free” consultations with prospective clients.
CON: If the lawyer is able to “win” or settle a client's case quickly, the lawyer still gets the same percentage and pockets the profit, not the client. Lawyers skilled at their craft are very selective about
the type of contingency fee cases they will agree to represent. The “free” consultation often does not include legal advice and is just an opportunity for the lawyer to decide whether they will take your case or not.
Meetings and “Consultations” with the Firm’s Attorneys
Prospective clients for estate planning, probate & guardianship must meet with an attorney before the firm will agree to represent them in their legal matter. Our firm often charges a flat fee for this initial meeting with the attorney. Initial meetings are generally an hour long during which time the client receives legal advice specific to them, their goals, and their type of legal matter. During the meeting, the prospective client can also request, and will receive an accurate quote for legal fees and estimated court costs (where applicable) for their specific matter.
Note to Prospective Clients: Agreeing to an initial meeting does not obligate you to hire the firm. This meeting is your opportunity to decide if the firm and its attorneys are the right fit for your legal matter. Additionally, an initial meeting is not the law firm’s agreement to represent you. The firm’s attorneys may determine during the initial meeting that we are unable to accept the representation or that we are unable to fulfill your stated goals. We believe that our fixed fee is fair because it ensures the client receives value for the time they spend with the firm’s attorney.
We understand other law firms may offer “free consults”. However, we also know our best clients appreciate our initial meeting—a low-cost opportunity to explore their legal options while testing the reputation and skill of our attorneys before spending thousands of dollars in legal fees! We want you to feel CONFIDENT about your decision to hire Grace Estate Law.
If you still have questions about why we charge an initial meeting fee, check out this video from the firm’s founding attorney:
HOW MUCH DOES GRACE ESTATE LAW CHARGE?
We charge fees for Estate Planning on a “Fixed Fee” basis. All fees are collected up front as the representation can be completed in a very short time frame—in less than a month—depending on the client’s availability. Generally, most estate planning representations can be completed in 2-3 meetings with an attorney. We use email to communicate with our clients, and secure portals to exchange documents and information needed to complete your documents in the most efficient way possible. We assist our clients with signing and finalizing all their documents at our physical office located in Frisco, Texas.
Our process: During an initial meeting, the client meets with one of the firm’s attorneys for an hour and completes a detailed questionnaire prior to the meeting. At the initial meeting, the client and lawyer discuss the client’s estate planning goals and the lawyer advises the clients about the legal documents that will fulfill the client’s goals and advises the client about the probate process, or how to minimize the probate process.
These documents are “packaged” and the client can choose the document package that meets their budget and primary estate planning goal. Because the documents and package are entirely dependent on the client’s goals and the legal advice provided by an attorney, the fixed fee will only be quoted by an attorney during the initial meeting. Costs such as deed recording fees are billed separately, but will be estimated at the time of the initial meeting with the client.
Have more questions about estate planning costs? Watch this helpful video by the firm’s founding attorney:
We use the billable-hour fee to charge and collect a fee for representation in probate and guardianship matters. Although these matters are often handled by specialized courts in North Texas called “probate courts”, each county’s probate court and each judge within the county may use a different legal process to decide the same type of case. Additionally, the time needed to complete even “simple” uncontested matters can vary widely, depending on the client’s specific facts. However, we use a one-hour initial meeting with our clients to understand all the facts involved so we can give an accurate estimate of the fees and costs to be expected. Additionally, we also advise prospective clients on whether there is an available, cheaper alternative to a court proceeding to achieve their same goals.
Our Process: When it comes to probates and guardianship matters, we know that our clients are having to advance a lot of costs, in addition to legal fees, as they step in to help family and loved ones. Therefore, we aim to find the most cost-efficient and quickest method for our client to gain access to their inheritance, or to handle the caregiving of a disabled family member. Prospective clients will meet with an attorney during an initial one-hour meeting to determine whether a court proceeding will achieve their primary goal, and the type of legal proceeding to pursue, if any. Because fees and costs are dependent on the client’s goal, and the legal advice provided, only an attorney can quote an accurate estimate during the initial meeting. We ask all our prospective probate & guardianship clients to complete a detailed questionnaire prior to the meeting so that the attorney knows what legal options they can advise the client.
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