When you decide on a lawyer, one of the main things you will most likely need to consider is how to pay. Attorneys typically offer some choices to their clients including hourly rates or a retainer agreement. Sometimes attorneys even offer a flat rate for a particular set service or set of services.
You might be wondering what a retainer agreement is specifically. In the simplest terms, a retainer agreement is a fixed amount that a client agrees to pay to an attorney for working on a case for a set period of time. While the specifics can vary, it is common for retainer agreements to run on a monthly basis. Understanding how retainers work is in general a good thing, as numerous other professions also use retainer agreements as well.
Upon entering into a formal retainer agreement with an attorney, the work the attorney is usually billed through the retainer. The way this works is that the funds for the retainer are set up in a secure trust fund account. When an attorney performs a given amount of work, he or she is then paid out of the funds in that trust fund account. If at the end of the month or other designated period, there are funds left over, those funds are rolled over into the next month. It is important to note that if you go over the amount covered by your retainer, then you will be billed for those hours.
There are numerous advantages to using a retainer agreement. However, most people are still paying on an hourly basis. Overall, most lawyers and clients who have used a retainer agreement feel that the retainer agreement is a superior form of payment and a superior arrangement in general.
One major reason that lawyers prefer retainer agreements to hourly pay is that they know that they will be working on a specific case well in advance. This has clear implications for caseload management and scheduling issues. The clients benefit, as they know that they have more of their lawyer's attention throughout the money being deposited ahead of time. You can think of it almost like a down payment on a home.
Clients often feel that they have saved money with a retainer agreement overall and that they have probably received more for their money. There are other benefits as well such as being able to have phone consults with their lawyer if the need arises. There can be no doubt that lawyers on retainer are less likely to be distracted as they know in advanced that they have specific cases that they will need to focus on.
This should serve clients will in the long run and is a major benefit of the retainer agreement process.
You might be wondering what a retainer agreement is specifically. In the simplest terms, a retainer agreement is a fixed amount that a client agrees to pay to an attorney for working on a case for a set period of time. While the specifics can vary, it is common for retainer agreements to run on a monthly basis. Understanding how retainers work is in general a good thing, as numerous other professions also use retainer agreements as well.
Upon entering into a formal retainer agreement with an attorney, the work the attorney is usually billed through the retainer. The way this works is that the funds for the retainer are set up in a secure trust fund account. When an attorney performs a given amount of work, he or she is then paid out of the funds in that trust fund account. If at the end of the month or other designated period, there are funds left over, those funds are rolled over into the next month. It is important to note that if you go over the amount covered by your retainer, then you will be billed for those hours.
There are numerous advantages to using a retainer agreement. However, most people are still paying on an hourly basis. Overall, most lawyers and clients who have used a retainer agreement feel that the retainer agreement is a superior form of payment and a superior arrangement in general.
One major reason that lawyers prefer retainer agreements to hourly pay is that they know that they will be working on a specific case well in advance. This has clear implications for caseload management and scheduling issues. The clients benefit, as they know that they have more of their lawyer's attention throughout the money being deposited ahead of time. You can think of it almost like a down payment on a home.
Clients often feel that they have saved money with a retainer agreement overall and that they have probably received more for their money. There are other benefits as well such as being able to have phone consults with their lawyer if the need arises. There can be no doubt that lawyers on retainer are less likely to be distracted as they know in advanced that they have specific cases that they will need to focus on.
This should serve clients will in the long run and is a major benefit of the retainer agreement process.
About the Author:
Jeff Harmon is a personal injury lawyer with over ten years of experience who maintains a regular blog discussing the field of law. Harmon has worked in both the San Francisco and San Diego areas and now resides outside of Tempe, Arizona with his three dogs.
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