Let's face it. Attorneys can be expensive. And the more they work for you, the more expensive they get.
Let's start with the hourly fee. Most attorneys charge by the hour. In a place like Eastern Idaho, hourly fees typically range from $150 to $250. That's a lot of money.
Most of what I do is family law, and my typical charge is $150 per hour. Where does that money go?
Below, I list just some of the costs.
First, attorneys either hire office staff or do the office work themselves. I plan on hiring a secretary within a year or so, and the work a secretary does in your behalf is not billed at all. Salary and various benefits are expensive. If the attorney doesn't have a secretary, he ends up doing the secretarial stuff himself--and he doesn't bill for that. So he drops things off at the post office, makes sure all the bills are paid, makes copies, spends time buying supplies, arranges for advertising, carefully edits forms, takes phone calls, greets clients, and does everything else a secretary would typically do. I stay pretty busy myself, but I spend less than half my time at work doing work I could bill clients for. The rest of my time I spend doing other law office work.
Second, a solo attorney doesn't get any benefits. I have to go out and buy my own health and dental insurance and retirement plan for myself and my family. That can be incredibly expensive. I also don't get paid time off, matching retirement funds, or any of the other perks people who work for a regular employer get.
Third, advertising costs. Some attorneys spend enormous sums of money to advertise on billboards, take out full-page ads in phone books, etc. Even more frugal attorneys may spend $15,000 a year on advertising--perhaps with small phone book ads, internet advertising, a website, and so forth. Attorneys advertise in order to get business. It's a necessary cost. I personally think that a full-page ad in the phone book is a waste, but I still need to advertise to do business. So part of what you pay for when you pay an attorney is so he can advertise to get additional clients. It's a necessary evil.
Fourth, the costs to run an office. Rent, phone, internet, utilities, supplies, furniture, equipment (like printers and computers), law books, etc. Smart attorneys accept credit cards, but they lose around 3% of whatever is paid through credit card to the credit card companies. Some attorneys will actually charge you for supplies like paper and stamps; I generally don't charge my clients for things like that, so I end up paying for it out of my own pocket. Those costs add up pretty quickly.
Fifth, insurance. It may not cost a whole lot to insure the items in a law office, but it does cost quite a bit to insure against malpractice insurance. Idaho doesn't require attorneys to have malpractice insurance, but many attorneys (and all the smart ones) do. Malpractice insurance is not cheap.
Sixth, membership fees. All attorneys who practice in Idaho need to be a member of the Idaho Bar. In addition, many attorneys are members of other organizations, such as the American Bar Association or a local service organization. These organizations have fairly hefty annual dues.
Seventh, to make up for lost time while the attorney went to school. Attorneys attend at least 7 years of school after high school--4 years undergraduate, and 3 years at law school. After I graduated from college, put before law school, I held a few different jobs, where I made anywhere from $20 to $25 per hour. Had I not gone to law school, I could have made $120,000 to $150,000 in those three years. When you pay an attorney, you're paying for highly-educated assistance.
Eighth, student debt. College isn't cheap. I managed to graduate from college debt-free thanks to a good work ethic and a nice summer job in California. But law school is much more expensive than undergraduate work. I worked full-time during the summer and part-time during the school year, I lived frugally, and I had some help from scholarships, but I still had a huge amount of student debt after I graduated. Law school's expensive, and part of what you pay the attorney goes to pay off that attorney's law school debt.
Ninth, a solo attorney pays high self-employment taxes and business taxes, as well as personal income tax.
Tenth, attorneys are required to take (and usually pay for) continuing legal education courses. These sometimes require significant funds and/or travel money to attend. For example, most family law courses in Idaho occur hundreds of miles from where I live. If I want to attend, not only do I have to pay for the course, I have to travel to Boise or Northern Idaho, rent a hotel, etc. Naturally, I take advantage of every opportunity in Eastern Idaho--for example, a course next week in Pocatello. That still requires almost two hours of driving, but I won't have to pay for a hotel. The education courses give me the education to better serve my clients, but they also cost money.
Do attorneys charge a lot? Sure. But after expenses there's not necessarily much left. In Eastern Idaho, the attorney probably isn't making a six figure salary. If you're thinking of going into law because of the money, think again. You'll make much better money as a doctor or a businessman. Speaking of which, why do doctors and hospitals charge so much?
Disclaimer: this blog and the
posts thereon are not to be taken as legal advice; consult an attorney
directly for legal advice. In addition, any posts, comments, or replies
to comments on this blog do not create an attorney/client relationship,
and are not protected by attorney/client privilege. If you wish to
obtain my help as an attorney, you can contact me directly at
208-206-1475, or you can email me at tim@shelleyattorney.com. My
website is www.shelleyattorney.com.
Wednesday, April 25, 2012
Wednesday, April 11, 2012
Elements of a Will--Part 11
Bonus Element--#11
Updating a Will
Most of the series so far have discussed 10 different points, but this 11th point is too important to leave out.
My parents had the same exact will for over 20 years. By the time they got an updated will, two of their children were born and became adults. All of their children left home. My father was quickly approaching retirement. The will that was okay 20 years ago no longer addressed their current situation.
In addition, they only had one will for the two of them. I don't know if that was a normal practice in the '80's, but it's certainly not acceptable any more.
Even if you have a will, you may need to update it. Look over it carefully to see if anything needs to be changed. Contact an attorney to look over it for you. Circumstances change, and so your will may need to be changed too.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Updating a Will
Most of the series so far have discussed 10 different points, but this 11th point is too important to leave out.
My parents had the same exact will for over 20 years. By the time they got an updated will, two of their children were born and became adults. All of their children left home. My father was quickly approaching retirement. The will that was okay 20 years ago no longer addressed their current situation.
In addition, they only had one will for the two of them. I don't know if that was a normal practice in the '80's, but it's certainly not acceptable any more.
Even if you have a will, you may need to update it. Look over it carefully to see if anything needs to be changed. Contact an attorney to look over it for you. Circumstances change, and so your will may need to be changed too.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Tuesday, April 10, 2012
Elements of a Will--Part 10
Other Documents
While not technically part of a will, I also recommend getting a Power of Attorney and a Living Will. They'll be of great help if you're still alive but unable to make decisions yourself. Some attorneys offer packages of Wills, Power of Attorney, and Living Will for fairly affordable prices. If you're getting a Will anyways, you should discuss these other options too.
I usually recommend a Living Trust only in certain circumstances. If you're leaving a large inheritance or if you have property in more than one state it may be worth your time and the cost. Talk to your attorney about a Living Trust if you think you want one. They're generally significantly more expensive than a Will, but they may be worth it in some cases.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
While not technically part of a will, I also recommend getting a Power of Attorney and a Living Will. They'll be of great help if you're still alive but unable to make decisions yourself. Some attorneys offer packages of Wills, Power of Attorney, and Living Will for fairly affordable prices. If you're getting a Will anyways, you should discuss these other options too.
I usually recommend a Living Trust only in certain circumstances. If you're leaving a large inheritance or if you have property in more than one state it may be worth your time and the cost. Talk to your attorney about a Living Trust if you think you want one. They're generally significantly more expensive than a Will, but they may be worth it in some cases.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Monday, April 9, 2012
Elements of a Will--Part 9
Where to Store a Will
Your original will should be stored in a safe place, and you should make copies (or have your attorney make copies) to store in other places and to give to people named in the will. Your attorney may also keep a copy of the will, but don't expect him to always hold on to it--there's no guarantee your attorney may still be there when you pass away.
I recommend keeping the original and a copy in two separate places (such as a safe deposit box and your home) and telling family members where the original is. I also recommend giving copies to your closest family members, assuming, of course, that you're not opposed to them seeing what is inside the will. If your attorney is technologically advanced enough to offer you a copy of your will on CD, you may want to keep a digital file of your will too. You can email it to yourself so that your email still has a copy of it even if your computer crashes. If no digital copy is provided to you, you can always scan a hard copy.
The court prefers to have the original, but a copy of the original is perfectly fine of the original can't be found.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Your original will should be stored in a safe place, and you should make copies (or have your attorney make copies) to store in other places and to give to people named in the will. Your attorney may also keep a copy of the will, but don't expect him to always hold on to it--there's no guarantee your attorney may still be there when you pass away.
I recommend keeping the original and a copy in two separate places (such as a safe deposit box and your home) and telling family members where the original is. I also recommend giving copies to your closest family members, assuming, of course, that you're not opposed to them seeing what is inside the will. If your attorney is technologically advanced enough to offer you a copy of your will on CD, you may want to keep a digital file of your will too. You can email it to yourself so that your email still has a copy of it even if your computer crashes. If no digital copy is provided to you, you can always scan a hard copy.
The court prefers to have the original, but a copy of the original is perfectly fine of the original can't be found.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Friday, April 6, 2012
Elements of a Will--Part 8
Signatures on Will
Your will needs to be signed by at least two witnesses. These witnesses should not be related to you, and they should not be named anywhere else in the will. If you're having your witnesses sign a Living Will or Power of Attorney for Health Care, you should make sure they don't work in the healthcare field. You should also have a Notary Public stamp and sign your will.
Additional rules apply to witnesses and Notary Publics. Your attorney may have his staff act as witnesses, or he may ask you to bring your own. Many attorneys in Idaho are Notary Publics, and so they may be able to notarize the will themselves.
If you're creating your own will, you'll need to do further investigations on the requirements for witnesses, signatures, and Notary Publics. Not getting this part exactly right can cause your entire will to fail.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Your will needs to be signed by at least two witnesses. These witnesses should not be related to you, and they should not be named anywhere else in the will. If you're having your witnesses sign a Living Will or Power of Attorney for Health Care, you should make sure they don't work in the healthcare field. You should also have a Notary Public stamp and sign your will.
Additional rules apply to witnesses and Notary Publics. Your attorney may have his staff act as witnesses, or he may ask you to bring your own. Many attorneys in Idaho are Notary Publics, and so they may be able to notarize the will themselves.
If you're creating your own will, you'll need to do further investigations on the requirements for witnesses, signatures, and Notary Publics. Not getting this part exactly right can cause your entire will to fail.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Thursday, April 5, 2012
Elements of a Will--Part 7
Do it yourself?
While it's possible to write a will yourself, and it's even possible to write a will yourself that a court will accept, I recommend obtaining the help of an attorney.
Wills don't have to cost a ton of money. A will can cost as low as $250, and as low as $300 for the two wills of a married couple whose wills are similar. Complicated wills, or wills for large estates, will probably be a bit more expensive.
If you do it without an attorney, you run into certain risks. For example, do you have enough witnesses, and are they the right kind of witnesses? If not, your will won't be accepted in court. Does your will include the right language? Does it provide your estate with the right kind of protection? Does it discourage lawsuits after you pass away?
Get it done right. Create your will with the help of an attorney who regularly does wills. It's not a big cost, and it will give you a quality will and peace of mind.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
While it's possible to write a will yourself, and it's even possible to write a will yourself that a court will accept, I recommend obtaining the help of an attorney.
Wills don't have to cost a ton of money. A will can cost as low as $250, and as low as $300 for the two wills of a married couple whose wills are similar. Complicated wills, or wills for large estates, will probably be a bit more expensive.
If you do it without an attorney, you run into certain risks. For example, do you have enough witnesses, and are they the right kind of witnesses? If not, your will won't be accepted in court. Does your will include the right language? Does it provide your estate with the right kind of protection? Does it discourage lawsuits after you pass away?
Get it done right. Create your will with the help of an attorney who regularly does wills. It's not a big cost, and it will give you a quality will and peace of mind.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Wednesday, April 4, 2012
Elements of a Will--Part 6
Executor
An Executor (also known as a Personal Representative) makes sure your will is carried out. Your Executor should be someone who is likely to outlive you, and someone you trust with financial matters. You will want to ask them beforehand if they're willing to serve as an Executor. You will also want to designate one or two backups, in case the first Executor is unable to carry out his duties.
If you don't have an Executor, the court will appoint him. But it's standard to name an Executor in a will, and your choice will probably follow your wishes better than someone the court chooses. You might as well name your Executor in your will.
An Executor (also known as a Personal Representative) makes sure your will is carried out. Your Executor should be someone who is likely to outlive you, and someone you trust with financial matters. You will want to ask them beforehand if they're willing to serve as an Executor. You will also want to designate one or two backups, in case the first Executor is unable to carry out his duties.
If you don't have an Executor, the court will appoint him. But it's standard to name an Executor in a will, and your choice will probably follow your wishes better than someone the court chooses. You might as well name your Executor in your will.
Tuesday, April 3, 2012
Elements of a Will--Part 5
Giving to Charities
Many people give substantial portions of their wealth to charities. Churches and universities are two of the biggest groups, but you can certainly give to museums, libraries, community organizations, and so forth. If you are giving significant amounts to charities in your will, make sure you see an attorney to make sure that your children and other close family members can't successfully dispute the gift to charity after you pass away. Your attorney can add language to the will that protects your gift to charity.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Many people give substantial portions of their wealth to charities. Churches and universities are two of the biggest groups, but you can certainly give to museums, libraries, community organizations, and so forth. If you are giving significant amounts to charities in your will, make sure you see an attorney to make sure that your children and other close family members can't successfully dispute the gift to charity after you pass away. Your attorney can add language to the will that protects your gift to charity.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Monday, April 2, 2012
Elements of a Will--Part 4
Giving to Other People
Even if you have children or grandchildren, you may wish to put friends or more distant relatives in your will. You can do this, of course, but if such gifts are significant your children or other family members may dispute such gifts after you pass away. They may even go to court.
If your will gives significant gifts to individuals who are not close family members, you should see an attorney to make sure your will includes the language it needs to to make sure your wishes are actually carried out.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
Even if you have children or grandchildren, you may wish to put friends or more distant relatives in your will. You can do this, of course, but if such gifts are significant your children or other family members may dispute such gifts after you pass away. They may even go to court.
If your will gives significant gifts to individuals who are not close family members, you should see an attorney to make sure your will includes the language it needs to to make sure your wishes are actually carried out.
Disclaimer: this blog and the posts thereon are not to be taken as legal advice; consult an attorney directly for legal advice. In addition, any posts, comments, or replies to comments on this blog do not create an attorney/client relationship, and are not protected by attorney/client privilege. If you wish to obtain my help as an attorney, you can contact me directly at 208-206-1475, or you can email me at tim@shelleyattorney.com. My website is www.shelleyattorney.com.
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