The issue of how you will pay your lawyer is usually a point of consideration when selecting a lawyer. Often lawyers will present their clients with two potential solutions for how they are to be paid. One solution is to go the hourly route and the other solution is to use a retainer agreement setup. Overall, a retainer agreement option has more benefits in most situations according to most lawyers and clients.
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.
Once you have formally established a retainer agreement with an attorney or firm, the work an attorney does on your case for that month, or other agreed upon period of time, is billed through the retainer. In terms of the specifics of the retainer, money the money is held in a secure trust fund. From the secure trust fund, an attorney can then draw upon the funds when services are rendered. The unused funds, if there are any, will then be rolled over into the next month. If you need more work done than is paid for by your retainer agreement, then you will be billed extra for those extra 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.
The reason that lawyers prefer the retainer agreement over an hourly pay rate is due to the fact that the lawyer knows that he or she will be working a given number of hours per month specifically on your case. This has obvious scheduling benefits for the lawyer and also insures the client that he or she will be made a priority within the lawyer’s schedule.
In terms of clients saving money, the impact of the retainer fee on a client’s bottom line can be positive as well. Clients usually feel as though they have saved money over the hourly rate option. Additionally, clients will fell that they are receiving more for their money as they have the option of picking up the phone and calling their attorney should a question arise.
Lawyers also will know that you are dedicated to your case and are less likely to get distracted with other cases throughout the month. In short, a retainer agreement will help your lawyer avoid distractions with other cases with is a major plus for any client.
Jeff Harmon is a former disability lawyer who is now working on a book about the legal profession. He loved working with clients directly over the years in Manhattan, but he also loves her new relaxing lifestyle at his lakefront property in Michigan.
