Table of Contents
How Do Hourly Attorney’s Fees Work?
How Does a Contingency Fee Work?
When a Contingency Fee May Make Sense
When Paying Hourly May Make Sense
Key Takeaways
- With hourly billing, you pay for the attorney’s time as the case moves forward, regardless of whether you ultimately recover your inheritance.
- With a contingency fee, you do not pay hourly attorney’s fees. The attorney receives an agreed-upon percentage when the case results in a recovery.
- Contingency representation makes sense for beneficiaries with a strong claim but who cannot afford to fund litigation themselves.
- Paying hourly may make more sense for someone who can comfortably afford expensive legal fees regardless of the outcome.
- Not every California trust litigation case qualifies for contingency representation.
Contingency Vs Hourly Fees
If you need to hire a California trust litigation attorney, one of your first questions is: How am I going to pay for this?
Some attorneys charge by the hour and require a large retainer before they begin working. The Grossman Law Firm may accept qualifying trust litigation cases on a contingency-fee basis, meaning the attorney receives a percentage of the recovery rather than charging hourly fees.
Neither option is automatically better. The right choice depends on your financial situation, the potential recovery, and how much financial risk you are comfortable taking.
At The Grossman Law Firm, Attorney Scott Grossman handles trust and probate litigation throughout California and accepts qualifying cases on a contingency fee basis. Our firm can help beneficiaries fight for their inheritance when they don’t have money to start on their own.
How Do Hourly Attorney's Fees Work?
With hourly representation, an attorney charges for the time spent working on your case.
The Grossman Law Firm may require an upfront retainer and then bill against that money as attorneys work on the matter. If the retainer runs low, the client has to deposit additional funds. For some beneficiaries, this arrangement works well. They have enough money available to fund the litigation and would rather pay legal fees as they go instead of paying a percentage of their potential recovery.
The tradeoff is financial risk. An hourly client pays for the attorney’s time regardless of the outcome. If a case lasts longer than expected, it can cost considerably more money than the client originally planned to spend.
A claim on an hourly agreement may be expensive and the client takes all the financial risk.
How Does a Contingency Fee Work?
A contingency fee shifts the financial risk from the client to the law firm.
Instead of charging hourly attorney’s fees, TGLF receives an agreed percentage of the client’s inheritance if it is recovered.
At The Grossman Law Firm, the contingency fee covers the time, risk, labor, and attorney expertise we put into claiming the inheritance.
If the case does not recover your inheritance, The Grossman Law Firm absorbs the cost of the time, labor, and attorney expertise devoted to the matter, along with expenses the firm paid under the agreement. If you do not recover your inheritance, you do not owe us money.
For beneficiaries who could not otherwise afford to pursue trust litigation, this difference can provide a practical path forward.
When a Contingency Fee May Make Sense
Maria Cannot Afford to Fund a Lawsuit
Maria expected to receive approximately $375,000 from her mother’s trust. Instead, the trustee stopped communicating with her, and financial records indicated that a substantial portion of the trust property had been transferred to another family member.
Maria was already struggling financially. She had bills to pay and had been counting on her inheritance to retire. Coming up with a large retainer and continuing to pay attorney’s fees as the case progressed wasn’t realistic.
Without another way to pay for representation, Maria faced the possibility of walking away and receiving nothing.
If her case qualified for contingency representation, she could pursue her claim without paying hourly attorney’s fees upfront. She would give up an agreed percentage of any recovery, but that gave her an opportunity to pursue an inheritance she might otherwise never receive.
For Maria, the question wasn’t whether a contingency fee was cheaper than hourly billing. It was whether she could realistically pursue the case at all.
When Paying Hourly May Make Sense
Robert Can Afford the Cost of Litigation
Robert also expected to receive a $375,000 inheritance. Unlike Maria, however, he had substantial savings and could comfortably afford an attorney’s retainer and ongoing hourly bills.
His case also appeared relatively straightforward. He understood that litigation could become more expensive than expected, but he was comfortable taking that risk.
For Robert, paying hourly could make more financial sense.
If his case is resolved quickly, the total hourly attorney’s fees might be considerably less than the percentage he would pay under a contingency agreement. This would allow him to keep more of his inheritance.
But Robert takes on the risk that Maria does not. If the litigation lasts longer than expected—or if he ultimately recovers nothing—he still has to pay the attorney for the work performed.
Same potential inheritance. Different financial circumstances. Different fee arrangements may make sense in different situations.
How Much Could a Contingency Fee Cost?
Here’s a simple example using a $375,000 gross recovery and The Grossman Law Firm’s contingency fee structure.
If the client receives their inheritance before pleadings are filed, a 25% contingency fee would equal $93,750.
Suppose the case reaches a later stage identified in the retainer agreement and the applicable rate is 33⅓%, the fee would be approximately $125,000.
If the case moves further into litigation and the 40% contingency rate applies, the fee on a $375,000 recovery would be $150,000.
The percentage can look significant when you see it in dollar terms. But the comparison depends on the client’s actual circumstances.
Someone who can afford to fund litigation may decide that hourly representation makes more sense. Someone who cannot may decide that receiving a portion of their inheritance is far better than having no realistic way to pursue it.
FAQ
Is a contingency fee cheaper than paying an attorney hourly?
Not necessarily. If you can afford hourly representation and your case resolves quickly, paying hourly could cost less. A contingency fee shifts the financial risk of pursuing the case to The Grossman Law Firm.
Do I need money upfront for a contingency fee case?
The Grossman Law Firm’s contingency fee does have any costs until your inheritance is distributed to you. The firm’s written agreement to hire us explains how fees and expenses work.
Does every trust litigation case qualify for a contingency fee?
No. Attorney Scott Grossman considers the facts, evidence, potential recovery, and other factors before determining whether a matter qualifies for contingency representation.
How do I know which option makes sense for me?
It depends on how much cash you have on hand. Consider not only what each arrangement could cost, but also what you can realistically afford if the case takes months or years to resolve.
Related Resources
How The Grossman Law Firm Can Help
You should not have to guess whether you can afford to pursue your inheritance. Understanding how attorney’s fees work can help you decide whether taking legal action makes financial sense for you.
At The Grossman Law Firm, we help beneficiaries and heirs throughout California enforce their rights in probate and trust litigation.
If you are considering hiring a law firm but are unsure what kind of agreement works for you, contact The Grossman Law Firm for a case evaluation.
Call (888) 443-6590 or complete our Get Help Now form to discuss your situation.
Our Intake Specialists can review your situation at no cost to you. Qualifying cases will be scheduled for a Free Phone Consultation with Attorney Scott Grossman.