Join us as we dissect the differences between advances and retainers, flat fees and fixed fees, and how the American Bar Association (ABA) defines these types of fees. We stress the importance of checking with your state and jurisdiction for any differences in their rules regarding fees and billing. Listen closely as we dig into the challenges and helpful aspects of the ABA's Formal Opinion 505, a significant development that emerged in May this year.

We examine the ABA's opinion on flat fees, fixed fees and how these fee structures influence the language used in engagement letters. Listen as we talk about the importance of using language such as non-refundable and earned upon receipt and why regular reviews of these fee structures are critical. Plus, we shed light on the importance of setting funds in the correct trust or operating account as per your jurisdiction.

Show Highlights:

• Exploration of American Bar Association's (ABA) definitions and interpretations of legal fees such as advances, retainers, flat fees, and fixed fees.
• Discussion on the ABA's Formal Opinion 505 and its implications on legal fee structures.
• Examination of terms like non-refundable and earned upon receipt in client engagement letters and their significance.
• Insight into the ABA's viewpoint that all fees are refundable unless they're a specific retainer, dating back to 1908.
• Analysis of the ABA's take on flat fees, fixed fees, and their impact on the language used in engagement letters.
• Importance of setting funds in the right trust or operating account as per jurisdiction rules.
• Encouragement for regular review and adjustment of fee structures in line with ABA guidelines and jurisdictional rules.

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Supporting Resources:

• Schedule a Consultation: https://gngf.com/consultation 
• Visit the Website: https://gngf.com/ 
• Visit streamlined.legal: https://streamlined.legal/ 
• Twitter: @NextLevel_Legal 
• Instagram or Facebook: @nextlevel.legal

ACTION STEPS:

MELANIE:

1. Check with your state or other jurisdiction! 
2. Review your engagement letter
3. Make sure that what you’re telling the clients and how you’re actually billing them matches with the letter. ***

Episode Credits

If you like this podcast and are thinking of creating your own, consider talking to my producer, Emerald City Productions. They helped me grow and produce the podcast you are listening to right now. Find out more at https://emeraldcitypro.com. Let them know I sent you.