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In handling estate planning is it better to base the fee on the total assets or hourly rate?
Anonymous5 views5 answers
I am an only child, and am trying to help my parents with their estate. Is there a standard to go by when deciding the attorney's fee? Is it better to base the fee on a percentage of total assets or better to stick with an hourly rate? Thank you very much.
Neither. Most estate planning attorneys these days use a flat fee. Usually estates with more assets are the ones that could have more complicated issues so the flat fee may be higher but it's not exactly tied to the amount of assets per se. You can certainly still see hourly rates in this area of practice but you can shop around.
Either a flat fee or hourly. In 24 years of practicing, I have never charged based on the percentage of total assets because such would be unethical in the State of CO where I am licensed. I don't know about Maine. Most will charge you a flat fee or an hourly basis.
I charge a flat fee but other may charge an hourly fee. I have not heard of anyone charging a fee that is equivalent to the total asset value. I will say this, Maine attorneys are prohibited from administering an estate upon a person's death for a fee based on the amount of assets administered.
I agree with my colleagues. MOst client's are better served with flat fee arrangements. I would add, however, that you should speak with several attorneys and choose the one with which you are most comfortable. Ask them to explain their fee arrangements, and what services are covered as part of those arrangements.
I hope this helped.
Best of Luck to you.
