What is a Letter of Engagement? 3 Things to Consider.
If you are seeking a lawyer in Florida you will likely be asked to sign a letter of engagement which is basically the contract that outlines your representation with your attorney. It is important to read these carefully they set out what you will have to pay your Probate Attorney and when. There are several different fee structures and several things to concern yourself when reviewing your letter of engagement.
Pricing:
- Flat fees are popular for probate litigation, and a variety of other litigation as well and is also the simplest (usually). Basically you pay your attorney a set fee, and that is all you owe, and you are guarenteed a certain service for example the drafting of an estate plan.
- Contingency is a type of billing that is less common in estate planning but basically you are promising the lawyer a percentage of what ever they get for you, so if you were left out of a will and he helps you get back into the inheritance, then you may owe up to one third of that amount to the lawyer. The upside here being if they do not win, you owe them a percentage of nothing which of course means nothing.
- Hourly is the final common way for an attorney to bill and its pretty self explanatory. Attorneys usually bill in the tenth of an hour and will send you out bills regularly for your review, the engagement letter will spell out these terms clearly.
Some questions you should consider when reviewing a letter of engagement?
- When is the money due? Some attorneys may require a retainer and also may require their fees be paid upfront others may demand payment within a month and add a late fee based on failure to timely pay.
- If you get a flat fee what does that include? Just the drafting of your trust? What about the re-titling of all of your assets? Are you being billed for these separately? Best to find out before you sign.
- What are you being promised? Is your attorney guarenteeing they will be available for communication? Are you expected to pay for outside counsel they may need to consult? Is there any promise of professionality etc?