Times are changing for the businesses of Trust and Estate (T&E) lawyers. Though T&E lawyers were once highly respected by wealthy clients and among professionals, they are finding it more and more difficult to get paid in full for their services. Surveys indicate that wealthy clients are becoming more cost sensitive to estate planning services. Many seek cheaper estate planning alternatives in non-legal professionals (like accountants and insurance agents) or attempt to whittle down legal fees, indicating that clients view these fees as adjustable and question the value of T&E lawyers. T&E lawyers can still achieve financial success by adapting to the changing environment, especially by demonstrating their value to their clients. This can be done by using a four-stage expectations model, where the attorney: (1) sets expectations by explaining the estate planning process, (2) manages expectations by allowing the client to be a part of the process, (3) confirms expectations by justifying the value of the work at the end of the process, and (4) periodically reviews expectations. Although some attorneys are hesitant to adopt this model as a part of their business, they are nevertheless more likely to be paid what they are worth when their client has a better understanding of the work they are paying for.
See Getting What You’re Worth, Private Wealth Magazine, Jan. 2012.
Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.
