Many general practice attorneys charge estates based on a flat fee of 5% to 6%. However, in many cases, especially for large to medium sized estates, this fee structure is excessive, and even exceeds the fee guidelines set forth below. Others charge a flat fee based on the Johnson Estate Guidelines.
The base salary for Estate Planning Attorney ranges from $62,818 to $77,594 with the average base salary of $69,838. The total cash compensation, which includes base, and annual incentives, can vary anywhere from $62,950 to $78,212 with the average total cash compensation of $69,880.
The attorney agrees to create a will, living will, and revocable living trust for $1,000. Unless something changes and you decide you want the attorney to do some additional work, you’ll only have to pay $1,000 for the attorney’s services.
The primary factors that cause the cost of an estate to vary include: 1. Size of the Estate and Types of Assets – When there are more assets or par...
A number of factors affect how much an attorney will charge. The biggest factors tend to be the experience of the attorney, where the attorney is l...
An estate lawyer will likely charge by the hour if the estate is large and complex, or the client will require several services, such as a trust, h...
The best billing structure is ultimately the one that works for the client. Wills, trusts, and estates lawyers understand this, and tend to bill ac...
Estate attorneys typically bill one of three ways: on a percentage basis; on an hourly basis; or on a flat fee basis. So which billing method is the right choice for you? Well let’s take a look at one these different methods really mean.
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The obvious benefit of the flat fee basis when it comes to estate administration work is that you will have in writing and know in advance exactly what you will be paying. Still, it’s important to ask the attorney how they are setting their flat fee and what assets they are including in making such a determination.
The answer is that you simply won’t know until the estate is actually finalized.
Nationally, the average top and bottom hourly rates for estate planning attorneys were $310 and $250.
Overwhelmingly, our readers reported positive experiences with their estate planning lawyers. More than eight in ten (82%) were satisfied or very satisfied with their attorneys, while only 6% reported any level of dissatisfaction.
There may be times when an estate planning lawyer insists on billing you by the hour – for example, if your situation requires ongoing legal support.
The most common rate (reported by 35% of readers) was between $300 and $400, although half of readers paid less than that. Only 15% paid $400 or more per hour.
Nationally, the average minimum hourly rate attorneys reported was $250, while the average maximum was $310. Individual lawyers often charge different rates, depending on the client and the type of service they’re providing. Also, rates vary among attorneys depending on several factors, including:
More than half (58%) of the probate attorneys in our national study reported that they offered free consultations. The typical time for these initial meetings was 30 minutes, though the overall average was higher (38 minutes). So when you’re looking to find a good probate lawyer, ask the potential attorneys whether they offer a free initial consultation. Even if they charge for their time , it can be worth your while to meet with more than one lawyer—and to go to the meetings prepared with a list of questions—in order to find the right attorney for your needs.
It shouldn’t be a surprise to learn that large estates tended to pay more for legal services. Big estates are more likely to have complex issues— including taxes and business assets —that require more of an attorney’s time and expertise. Also, some states limit fees according to the size of the estate, allowing attorneys to charge more for larger estates. More than a third (36%) of readers who were settling estates worth $1 million or more said that the estate paid $10,000 or more in legal fees, compared to 18% of those who were handling estates worth less than that.
The attorney’s experience. Not surprisingly, our study showed that hourly rates climbed as probate lawyers had more years in practice. But it’s worth keeping in mind that in this respect, at least, a higher hourly rate doesn’t necessarily translate into a higher total bill. Often, specialists with significant experience in estate administration may be able to answer your questions or handle difficult estate matters more quickly than less-seasoned lawyers.
If you’re serving as an executor, personal representative, trustee, or administrator of an estate, you might need a lawyer’s help with some part of the process. The good news is that estate funds will almost always pay for that help. Still, you don’t want to squander the estate’s money—and you probably want to know what to expect in the way of attorney’s fees. We surveyed readers around the United States who recently acted as executors, personal representatives, trustees, and/or administrators to ask about their fee arrangements with attorneys and their total bills. We then compared the survey results with data on fees reported by probate attorneys across the country. Here’s some of what we found out.
In a few states (such as California and Florida), attorneys are allowed to charge a percentage of the estate’s value as the fee for handling probate. In our survey, only 8% of readers who paid a lawyer for help said the estate they were handling paid a percentage-based attorney’s fee.
Below are some examples of types of cases that estate planning lawyers may be able to handle.
Drafting an estate plan can provide you with a multitude of benefits. These include:
A variety of factors will influence the cost of an estate plan. There are two main factors that will affect the cost of creating an estate plan. The first one is the type of plan required. This includes what legal documents you need.
There are many options for finding an estate lawyer. Recommendations from family and friends is a great way to find one. If this option is not available to you, a simple internet search can do the trick.
Large Estates — Around $4,000 per case would be an average amount expected from a probate lawyer. Paying a flat fee may be expensive on the surface, but you (4) …
Many general practice attorneys charge estates based on a flat fee of 5% to 6%. However, in many cases, especially for large to medium sized estates, this fee (7) …
Estates and trust attorneys typically charge clients in one of three ways: hourly fee, flat fee, or contingency fee. In addition to the attorney’s regular (9) …
Mar 11, 2020 — One of the costliest parts of the probate process for many families is the cost of hiring an attorney. On average, a probate attorney costs (17) …
Feb 12, 2021 — Attorneys usually charge a flat fee for will-writing services. If you need additional estate planning services, your lawyer may charge an (21) …
Mar 18, 2021 — If your attorney can’t pinpoint a fixed fee to charge you, he or she will likely use an hourly rate. This would encompass any time your lawyer (27) …
Texas attorney Rania Combs provides a fee schedule for basic legal services involving wills, trusts and estate planning in Texas. (29) …
Some attorneys charge an hourly rate for their services, which can range from $150 to upward of $300. It can depend on several factors, including the lawyer’s experience, whether they’re a general practitioner or a dedicated probate lawyer, whether they’re part of a firm or work on their own, as well as their location. Big city attorneys invariably charge more than their more rural counterparts, and probate lawyers’ fees tend to be steeper than those of general practitioners. After all, they’re experts when it comes to handling probate issues.
Executors should take a deep breath if they’ve been asked to administer an estate and they're panicking a little over how much it will cost them. Executors are not responsible for personally paying any professionals from whom they seek assistance during the probate process, including an attorney. Probate lawyer fees are always paid out of the estate.
Probate is required to move property and assets from the ownership of the deceased into the names of living beneficiaries, assuming that there’s no built-in mechanism in place to achieve this . For example, property held as joint tenants with rights of survivorship passes directly to the survivor by operation of law. The same applies to joint bank accounts, while “payable-on-death” accounts and assets with named beneficiaries are set up to go to the beneficiary upon the primary account holder’s death without the necessity of probate.
Of course, the estate’s beneficiaries might feel a bit of a pinch because this depletes the value of the estate , leaving less available to transfer to the ownership of others.
The estate will pay for six minutes or one-tenth of their time if they take a phone call on the executor's behalf that lasts just three minutes. It will pay for 18 minutes if the attorney spends 15 minutes drafting a letter – and yes, they keep meticulous records of their time. But there’s a bright side here.
Probate of an estate can be a complicated process, and an executor isn’t always up to the task of tackling it alone. It’s no reflection on their abilities, but rather the result of the numerous legal steps through which an estate must pass on its way to settlement. Lawyers who assist with the probate process charge for their work in one ...
Attorneys often delegate some routine work to paralegals and young associates – under their supervision, of course – and the hourly rates of these individuals are usually less, sometimes significantly. The estate won’t have to pay $300 an hour for correspondence drafted by a paralegal. Even so, the executor won’t know what the total fee will end up costing the estate until the end of the road when all the legal work is complete, every minute is accounted for and the estate closes.
If he quotes you a $5,000 flat fee and he bills his time at $200 an hour, he expects that he and his firm will spend about 20 to 25 hours on your case. The general rule is that the higher an attorney's hourly rate, the more experience he has.
An estate planning attorney is in business to earn a living, and time spent with you takes time away from billable hours that he could be spending on other clients' matters. That said, this is also his opportunity to "sell" you on retaining his services and to get an idea of what your matter involves. This is when he determines how many hours he and his staff will have to invest into resolving your issue...and if he wants to take your case on.
A flat fee is a composite of the attorney's standard hourly rate and how many hours he thinks he'll have to invest in your case to resolve it. Ask what that hourly rate is, and find out how much you'll be charged for the services of other attorneys and paralegals in the firm.
The only reasonable alternative would be for the attorney to charge you on an hourly basis. The downside to this approach is that it leaves a great deal of uncertainty for you as to what the final total cost will be. You can avoid this by asking your attorney to come up with a flat fee to cover all the services that she'll be providing to you. Just be prepared to move on and interview other attorneys if she declines.
Most estate planning attorneys don't charge a fee for the initial meeting, but this is by no means a universal rule. Don't be surprised if the attorney does charge a small fee for sitting down with you for the first time. It can go either way.
Julie Garber is an estate planning and taxes expert with over 25 years of experience as a lawyer and trust officer. She is a vice president at BMO Harris Wealth management and a CFP. Julie has been quoted in The New York Times, the New York Post, Consumer Reports, Insurance News Net Magazine, and many other publications.