There are many different ways to pay for your lawyer. Assuming that your lawyer is an active member of the State Bar of Arizona, you can pay your lawyer through many different rates and fees. After all, not all lawyers will charge you the same way. Before you make any agreement with your lawyer, make sure that the rates and fee arrangements are fair for both parties. If you are the type of person who doesn’t want to waste precious time and money, it would be best for you to come with an agreement with your lawyer about the fees first. Here are some of the many rates and fees in which you can pay your lawyer.
One of the most common ways of paying a lawyer is through an hourly rate. As its name implies, the lawyer will charge a set amount for each hour spent working on your legal concerns. Lawyers with lesser experience will also have lesser hourly rates compared to other lawyers. Another common way of paying a lawyer is through a contingency fee. This type of payment is often used in personal injury cases. In this type of agreement, the lawyer will agree to take a certain percentage of the money you receive after winning the case. If the case is to be settled outside of court, the lawyer will still take a certain percentage of the winnings.
Perhaps the simplest way of paying your lawyer is through a fixed fee. At the start of the case, you and your lawyer will agree on a fixed amount. This amount will not change despite how long it takes to finish the case. This type of agreement is often used in routine legal issues like preparing a will or a bankruptcy filing. When using this type of rate, make sure that you know about what is covered and what is not. After all, you wouldn’t want to be paying any more than you should.
Some of you might not know but IOLTA Arizona has been around for quite some time now. IOLTA programs were first implemented in Australia and Canada way back in the 1960s. Its purpose remains the same after all these decades. This purpose is to raise funds for civil legal services to the less fortunate. Additionally, funds raised through these programs are also for other charitable purposes. The IOLTA programs in the states of America vary from each other. In fact, all of these programs are state specific. This means that rules and regulations present in a specific state may not be applicable in other states. Most of the IOLTA programs of today’s states are being handled by their state bar association. However, there are cases where other organizations are in charge of the IOLTA program.
Today, most of the civil legal services that are provided to the poor are funded by IOLTA. The IOLTA’s revenue has become the major source of these funding. It should be noted though that IOLTA’s revenue is not stable. In short, the amount of money that is produced by the IOLTA programs is unpredictable. This is because it will all depend on the interests of the funds. The economic status of the state can also affect the IOLTA’s revenue stream.
In the past, some people were under the assumption that IOLTA was a way to take the money of the lawyers’ clients. This, however, was not really the case. IOLTA was only applied to funds that are not large enough to generate a gross benefit for the clients. If separate accounts were made for smaller funds, the clients will suffer from a net loss. By putting all the smaller funds together in an interest-bearing account, the less fortunate will be able to benefit from the interests. If you think about it, nobody will be at a disadvantage.
It was in the 1980’s IOLTA was first used in the United States. Prior to that, IOLTA accounts were first implemented in other countries, and these are Canada and Australia. In the United States, it was the state of Florida that first enforced the usage of IOLTA accounts. Not so long, the remaining 49 states followed the move of Florida. The first three states that implemented IOLTA after Florida did their part are Idaho, California and Maryland. Since then, even the known territories of the United States did the same thing. Colorado IOLTA works very much the same as the others.
As a review, IOLTA or Interest on Lawyers Trust Accounts is the type of account that majority of lawyers uses in order to hold the funds of their clients. The mentioned funds will be used in the future for funding the expenses that the lawyers might encounter once they started working on the case. This simply indicates that the client’s funds are solely separated from the personal money of the lawyers. Maybe you’ve heard that the IOLTA accounts are ‘Interest Bearing Accounts’, and this fact is absolutely true. All the interests that can be generated by the IOLTA accounts in a certain state will then be pooled together. The accumulated interests will be used to help the indigents have legal help.
Attorneys use their IOLTA account once they receive funds from their clients. These funds are the payments of the clients in order for attorneys to perform their legal services. Lawyers are never allowed to combine their personal money and the money of their clients. To clarify, not all the payments of the clients will be deposited in the IOLTA account. It depends on the time and amount of money. If the client’s payment is indeed a huge amount of money, and the person wants the lawyer to hold it for a long time, the funds will not be deposited in IOLTA. However, if the payment is nominal and the client is only yearning that the money will be kept by the attorney for a short time, the money will directly go to the IOLTA account.
A lot of people wonder what Interest on Lawyers Trust Account (IOLTA) means. Almost 50 states have IOLTA programs in their area. This is specifically established by the Supreme Court which indicates that law firms and lawyers must comply with the rules and regulations that is under the IOLTA Program. Funds that come from clients which are for temporary safekeeping are deposited into a dividend-earning account or pooled interest-bearing account. The interests earned from this account are directly forwarded to the State Bar which will then be used to assist low-income citizens to avail civil legal services. Some of the interests earned are also used to fund programs that help improve law education and judicial system.
The Arizona IOLTA program gives lawyers an absolutely cost-effective means to safeguard funds received from their clients. If a client has a large amount of money that has to be kept for a while longer, there is another option of creating a separate individual account for that client so that the interest earned from that money will be directly paid to the client. The good thing about pooled accounts like that of the IOLTA is that clients with small amounts of money that are to be kept for a short period of time which cannot warranty an interest are being deposited into an interest-bearing account which has two purposes: one is that the money will be safeguarded until the time that it will be needed; and it will earn an interest together with the funds in the account which will be used for the good of the public.
This is surely a unique and beneficial program which the state’s Supreme Court made. This will surely put a high regard to law profession because having so much client money under for the IOLTA Programs’ safekeeping will definitely earn the trust of their clients and the fact that the interests go to charity purposes really make the difference.