Attorney’s Fees – How to Avoid Large Legal Bills

Most attorneys make a good living and they do so by charging attorney’s fees. This begs the question, what exactly are attorney’s fees and what should I know about attorney’s fees before I hire a lawyer? This article describes the different types of attorney’s fees and provides a number of tips for determining which type of attorney fee is best for you.

  • A Few Minutes at a Time: The Hourly Attorneys Fee
  • Most attorneys charge hourly rates. Hourly rates are usually calculated by tracking hours in one, six, or ten minute increments. Some attorneys may even use hour increments. The rate attorneys charge per hour varies greatly based on the location of the attorney, the type of work to be performed, and the time required. It is not uncommon for specialized attorneys to charge in excess of $600 per hour. Most attorneys charge an hourly rate closer to $300 per hour. While hiring an attorney who charges higher hourly rates may sound ludicrous, clients should understand that a specialist may be able to perform work much faster than a non-specialist. This is especially true if the non-specialist will have to bill a significant amount of hours to get up to speed on a legal matter.

  • One Successful Legal Issue at a Time: The Contingent Attorneys Fee
  • Contingent attorney’s fees are also common. These fees are based on the success of the attorney in the legal matter. They are usually calculated using a set percentage. For example, a personal injury attorney may charge a contingency fee equal to 40 percent of any lawsuit recovery. These fees can routinely range from 30 to 60 percent. Contingency fees may encourage the attorney to use his best efforts to resolve the matter. If they extend to settlements reached before the lawsuit ends, contingency fees may also encourage the attorney to settle the matter for any amount in the beginning of the case. In this case the attorney will have performed little work and in exchange for earning a fee – albeit a smaller fee that he may have earned for putting in more effort.

  • One Legal Issue Regardless of Outcome: The Flat Attorneys Fee

Flat fees are less common for attorneys. These fees consist of specified payment or payments denominated in a dollar amount. These fees can vary significantly, but they should relate to the attorney’s estimation of how much time the case will take plus a profit component. Thus, a matter that will probably take ten hours for an attorney whose hourly rate is $300 per hour, might be offered by the attorney at $3,500.

Flat fees can help clients budget for legal costs, but they do have some drawbacks. Because they are not tied to the outcome of the case, the attorney may end up working faster and not smarter. Also, the attorney may be tempted to compartmentalize the job and charge a separate flat fee for each component. This can end up costing the client more than the contingent or hourly attorney fees they would have otherwise paid.

Conclusion

Clients should consider these options in deciding which attorney to hire. Ultimately, it is up to the client to negotiate an attorney fee payment arrangement that they are comfortable with. Most attorneys will be receptive to this type of negotiation.

10 FAQ’s for Attorneys Appointed Under a UK Lasting Power of Attorney

Lasting Powers of Attorney – The role of the ATTORNEY – UK

Have you been asked to be an Attorney and are you wondering what this really means? Are you concerned that you don’t know what to do?

This article explains your role and answers some key questions.

Lets start with what is expected of you as an Attorney.

FAQ’s

1. What does an Attorney have to do?

An Attorney is someone who has the authority to make decisions and act someone’s behalf.

So, you would be expected to make decisions and carry out tasks on behalf of the person who signed the Lasting Power of Attorney.

The following information should give you a good understanding of purpose of an LPA, but first, a little more background.

2. Who can be an Attorney?

Anyone over 18, you can be a friend or relative and people frequently ask their spouse to do it. Normally it is someone they trust and who knows them reasonably well. You can choose a professional attorney who will be paid for their service.

3. When do I actually have to do something? When do I become the attorney?

If the person with the LPA becomes too ill to look after their own affairs, then you as the attorney can start to make decisions and manage their affairs for them.

We call this losing capacity. You lose capacity if you are unable to make decisions.

4. How can I tell if someone has lost capacity?

Often medical staff will be the first to declare that someone has lost capacity. But you should still consider for yourself whether you think that they are able to make a decision. The law gives guidance on decision making:

  • Are they unable to understand information relevant to the decision?
  • Can they retain that information?
  • Can they weight that information as part of the process of making a decision?
  • Can they communicate it (whether by talking, using sign language or any other means)?

It may be that the incapacity is only temporary, but you may still be required to make decisions for them if they are incapacitated for a short time.

There is more information in Part 3 of the Mental Capacity Act Please bear in mind that the reason for the incapacity could be physical or mental, it could be due to accident, illness or for another reason. What is important is whether they are “incapacitated”.

If you are unsure, you must get further advice. Talk to medical professionals who are treating the person who made the LPA.

Please note that it does not matter if the person is making unwise or unexpected decisions, you may not agree with them but that doesn’t mean they lack capacity. Remember, you can only act when they are no longer able to make decisions.

As an attorney you should try to help the person who signed the LPA to make their own decisions if possible.

Useful information on the capacity to make decisions can be found in the Mental Capacity Act Part 3

5. What decisions can I make? What does “manage affairs” mean?

The first thing you should do is look at the LPA document. There are two types and you may be an attorney under one or both types of LPA.

  1. Lasting Power of Attorney – Health and Wellbeing or,
  2. Lasting Power of Attorney – Property and Financial Affairs.

If you are an Attorney under a Health and Wellbeing LPA you may be asked to make decisions about various aspects of the persons personal life. For example, you could be asked to make decisions on what medical treatment they receive or where they are to live, even what they eat and wear. You will only do this if the donor has lost the capacity (ability) to make the decisions for themselves.

If you are and Attorney under a Property and Financial Affairs LPA you can make decisions about money and property, you can pay bills, collect benefits and even sell the persons home for them. You can use authority this at any time, the person making the LPA does not need to have lost capacity.

6. Doesn’t this give me a lot of responsibility?

Yes, it does. You are in a very privileged position to help someone you care for. The LPA gives you the power to access someone else’s money and property and make intimate decisions over their personal lives.

However, you cannot abuse your position. You are legally obliged to always act in the persons Best Interests. This means you can only act on their behalf and you cannot make any decisions that aren’t in their best interests. You must also take reasonable care when making the decisions.

For guidance on what “best interests” means, you should look at Part 4 of the Mental Capacity Act.

Checklist:

  • Has the LPA been properly stamped by the Office of The Public Guardian? The LPA must have been completed and registered with the Office of the Public Guardian before you can do anything as an attorney.

Read through LPA document.

  • Look at any restrictions in the LPA has the person written anything in it? Look at page 6, section 5 of the LPA and make sure you comply with these restrictions. At section 6 the donor may have given the Attorneys guidance. This is does not have to be followed but should give you an idea of what the donor would have wanted if they still had capacity and it may help you decide what is in their best interests.
  • Does the document allow you to make decisions alone or do you have to make them with someone else “jointly”? You must make sure you comply with these directions. If it says “severally” this means that each attorney can act separately to the other attorney(s). Look at the LPA on page 5. You need to make sure that you can communicate with any other attorneys, especially where need to make decisions together.

Are you clear on your role and responsibilities? If not, have a look at chapters 4 and 5 of the Code of Practice of the Mental Capacity Act.

7. What happens if I have to spend my own money?

As a donor you are always entitled to claim your reasonable out-of-pocket expenses that you incur on their behalf. You should always keep a record and receipts for these expenses.

The donor may wish to pay a professional attorney for their services, in which case this will be detailed in the LPA on page 6 at section 7.

8. Do I have to be an Attorney?

No, you don’t. It is always better to tell someone that you don’t want to do it at the time they are making the LPA, so that they can choose someone else. If you withdraw later it can cause many problems and a lot of confusion.

9. Can I operate a bank account for the donor (person who signed the LPA)

Yes, you can if the LPA is a Property or Financial Affairs LPA. Always look at the guidance and restrictions in the document. Also make sure that you only use their money for their best interests.

If you are managing a bank account for someone else and finding the bank is not being helpful, then have a look for the “British Bankers Association Guidance for Consumers”. It gives guidance to you and the bank to help the attorney to access an account. You may wish to take it to the bank to remind them of their role.

10. Can I act on behalf of a parent, child or friend who has completed but not registered the Lasting Power of Attorney?

No, unfortunately it doesn’t matter how much you care for them or how much they would like you to help. It must be registered or you will not have the authority you need to conduct their affairs. In these circumstances you will unfortunately have to apply to the Court of Protection for the authority to act. They have to make a decision who should help and they usually place restrictions on the role of the attorney.

How Do People Select Rhode Island Divorce Attorneys to Interview?

Let’s face it. Rhode Island lawyers and lawyers in general are officers of the court. We’re supposed to be servants of the public. Yet at the same same we’re independent practitioners and we we’ve got a job to do and money to bring in through our private practice or we don’t survive.

It’s no wonder Rhode Island Lawyers are viewed with skepticism and even cynicism, especially when it’s time to hire one and you’re not sure who to hire or what to do. Here you are, you have a legal issue that needs to be addressed and you take the time to try to identify an attorney who will meet your needs.

It’s easy for questions to surface as to whether the attorney you’re interviewing is looking out for your best interests or simply looking out for his or her own interests and making some money to put food on his or her own table. It is, in fact, appropriate for you to question the attorney’s motives. The best time to do that is at the time you interview the attorney.

You should know that when you set up an appointment to see an attorney, YOU are interviewing the attorney just as much as the attorney is interviewing YOU.

So how do people generally go about choosing an attorney?

1) A referral from a friend or family member.

This is a good source of referrals for the attorney, but is the attorney right for YOU? What did the attorney do for that friend or family member who made the referral? Did the attorney settle a personal injury case? That’s not going to do you much good if you need someone for a family law matter. If your referral isn’t to an attorney that regularly practices in the area of law you need and it isn’t from a person who used those same type of family law services then the referral is “empty”, in other words a referral should be better than just hunting around in the yellow pages. It should provide some valuable reassurance that the attorney you’ve been referred to, can and has already provided valuable an competent services to the person who is making the referral to you, and that those services are in the area of law that you need help with. Without that criteria, the referral is “Empty”.

2) An advertisement in the yellow pages.

This is of course an even less effective way to select a suitable lawyer to interview than the referral from a friend or family member who did not use the attorney for the same type of legal services that you are in need of. When you just select attorneys out of the yellow pages you will most likely do like everyone else does. You select the attorney based on the advertisement itself, particularly its size and its wording. Unfortunately neither of these are indicators that the attorney is competent or will serve you well in the area of law you are in need of. Imagine that you are in need of a divorce attorney and you select the attorney’s advertisement that is the largest and includes the words “Estates”, “Personal Injury Cases”, and Divorces, etc… with 15 years in practice”.

First, that advertisement probably cost quite a bit since even small advertisements in the yellow pages run $3,000 to $5,000 a year. From there you can take a guess who has to pay for just that single marketing ad. That’s right…that attorney’s clients. You can almost certainly plan to pay more for an attorney with a decent sized yellow page ad. Conversely, that attorney might be worth it if you select just the right one.

Second, the “15 years in practice” tells you one of two things. Either that you are going to pay more for those years of experience or that he has been doing “something” law-related for 15 years. I know attorneys who have been in practice for 20 years and have handled perhaps 10 divorces in that amount of time. By the same token the advertisement above wouldn’t seem as impressive if you knew that the attorney only handled 4 divorces within his 15 years of practice. That might not want to be the attorney you want to represent you if you need a Rhode Island Divorce attorney and complex divorce issues regarding pensions, alimony and tax consequences on the sale of a home come into play.

3) Search for the kind of Rhode Island lawyer you want on the internet.

This is becoming more and more the method of searching for attorneys in the technoliterate sector of society. Those who choose this method of searching can go to Google.com or another search site of their choice and type in the various terms they want to search on. Searchers can also vary their search terms if the results do not suit them. The main benefit to searching the internet to find Rhode Island attorneys to interview is the third party nature of the ranking system. In a search system such as Google.com, the primary listings are ranked by criteria that are not controlled by attorney. It is Google’s system that analyzes the attorney’s websites and/or pages and determines from there whether the attorney’s website matches the criteria you are looking for. In this way you are getting an unbiased selection of attorney websites to review.

Secondarily, if you are searching on the internet for an attorney, you will know if the attorney has a website or not. This will at least give you some indication that the attorney has kept up with technology. If he or she has done so then if it is important to be able to communicate with your attorney by email this may be a factor in your decision to interview that particular attorney. The information on the website of the attorney is also likely to be the most focused regarding what his or her primary practice areas. In some instances the attorney’s website will provide the most valuable information about the attorney in order to decide which attorneys to interview.