If you find yourself in the position of needing to enlist the services of an estate attorney for the administration of a loved one’s estate, it’s crucial to ensure that you don’t end up paying more than necessary.
Estate attorneys typically employ one of three billing methods: a percentage basis, an hourly basis, or a flat fee basis. Deciding which method is the right choice for you requires a closer look at what each entails.
If an estate attorney indicates that their fee is based on a percentage of the overall size of the decedent’s estate, it’s essential to understand the implications. For example, if the estate is valued at $500,000, and the attorney’s fee is set at 5% of the value, this could translate to a $25,000 legal fee. The potential issue with this method lies in determining what constitutes an estate or probate asset. If, for instance, the estate consists of a $500,000 investment account with designated beneficiaries, paying an attorney 5% to facilitate the account transfer may seem unwarranted. When dealing with a percentage-based fee structure, it’s crucial to clarify in advance what the attorney considers as part of the estate when calculating their fee.
Alternatively, if the estate attorney opts for an hourly rate, the concern shifts to the uncertainty of the final cost. The client won’t know the total expenses until the estate administration is complete, leading to the possibility of an unexpected and unpleasant final bill.
The flat fee basis offers the advantage of knowing the cost upfront. However, it’s important to inquire about how the attorney determines the flat fee and what assets are included in this calculation. A substantial estate doesn’t necessarily warrant a correspondingly large legal fee.
In conclusion, conducting thorough research in advance is paramount. Engage with multiple experienced estate attorneys and select the one with whom you feel most comfortable. Asking pertinent questions can save you time, trouble, and money.
American Wills & Estates is a locally founded, owned, and operated law firm specializing exclusively in Probate Estate Administration and Estate Planning law. As the #1 rated Probate Estate Administration law firm in Pittsburgh and Western Pennsylvania, we invite you to contact us today for a free legal consultation with a trusted and experienced Estate Administration lawyer. Your peace of mind is our priority, and you’ll be pleased with the decision to consult with us.
