Legal Question in Wills and Trusts in New York

Re: NYC Legal Fee for Attny

I actually wrote a letter to the New York State Bar association on the same issue, since it is easier to charge a percentage of the estate rather than on an hourly rate. That is how attorneys charge in California.

The answer I received was not helpful. Basically, you can charge a percentage as long as it is commensurate with the work. For example, to charge 5% on a million dollar estate where all the money is in a bank account and there is 1 beneficiary is exorbitant for maybe 10 hours of work (approx. $5,000 an hour). However, if the money and beneficiaries are all over the world and there would be 500 hours of work (approx. $100 an hour) is very reasonable.

So the answer to charge a percentage of the estate depends on time, risk and degree of difficulty to probate and collect on the estate.

Mike.

Re: NYC Legal Fee for Attny

I generally agree with Mike that charging a percentage can be either a windfall for the attorney (where the estate is large but simple to handle) or could be costly (where the hours involved greatly exceed the fee paid). In most cases it is the windfall. I suggest contacting the County Bar Association (where the decedent died and the Will was probated) for referrals on estate attorneys, and find one that only charges by the hour (fees per hour can differ but anticipate $250-$300/hour). Any attorney with experience, like myself who has done this for decades, can anticipate what time it will take and give you an estimate of the fees. Some of the work can be done by the Executor himself and this will cut down on the time. If the estate is somewhat simple in types of assets involved, debts and expenses are cut and dried, all that is necessary is simple paperwork . Even small value estates can have complications just as large ones can be very simple, so there is no easy answer. Contact me directly if you need more information.