So what is a retainer agreement? A retainer agreement is a fixed amount that a client pays to guarantee that the lawyer will work on your case for a set period of time. Usually this is an estimated amount that is paid monthly. Retainer agreements aren’t just used by lawyers; all kinds of professionals use retainers including freelancers and real estate professionals.

Once you have formally established a retainer agreement with an attorney or firm, the work an attorney does on your case for that month, or other agreed upon period of time, is billed through the retainer. In terms of the specifics of the retainer, money the money is held in a secure trust fund. From the secure trust fund, an attorney can then draw upon the funds when services are rendered. The unused funds, if there are any, will then be rolled over into the next month. If you need more work done than is paid for by your retainer agreement, then you will be billed extra for those extra hours.

Hourly rates are usually the most common form of pay with most lawyers. With an hourly rate, obviously, you would keep paying your attorney until the case was settled. However, most lawyers and clients find that the retainer agreement is a better solution for both parties.

One major reason that lawyers prefer retainer agreements to hourly pay is that they know that they will be working on a specific case well in advance. This has clear implications for caseload management and scheduling issues. The clients benefit, as they know that they have more of their lawyer’s attention throughout the money being deposited ahead of time. You can think of it almost like a down payment on a home.

In terms of clients saving money, the impact of the retainer fee on a client’s bottom line can be positive as well. Clients usually feel as though they have saved money over the hourly rate option. Additionally, clients will fell that they are receiving more for their money as they have the option of picking up the phone and calling their attorney should a question arise.

Lawyers also will know that you are dedicated to your case and are less likely to get distracted with other cases throughout the month. In short, a retainer agreement will help your lawyer avoid distractions with other cases with is a major plus for any client.

Jeff Harmon is from a family that is quite full of lawyers of all shapes and sizes. Since he was a “wee lad,” he has been hearing legal jargon, legal stories and legal horror stories. Living in a suburb of Atlanta, Jeff now is a workmans compensation lawyer who writes about the legal profession and occasionally pens a short story.