Retainer of Services
Page last modified: December 08 2023
Generally speaking, the term “retainer” has two meanings: it describes the terms of the contract signed when retaining legal counsel as well as the money paid up front as security for payment for services. The retainer, or money paid up front, is deposited into a trust account with an attorney or paralegal. It’s crucial to remember that the retainer, or money paid up front, is YOUR money.
Disbursements will be incurred by your attorney or paralegal as your case moves forward (such as filing fees for your documents in court, travel expenses, and several other costs typical of the legal process). In addition, you will get bills from your attorney or paralegal for services done during the course of your case.
Your lawyer or paralegal will occasionally, maybe on a monthly basis, move money from your trust account into their general business account after expenses have been paid or fees have been collected. Never will the amount sent exceed the balance owed on the account.
Until funds are properly due as reimbursement for expenses paid out or fees earned for the progress in work completed, whether as hours billed or a flat rate for performance of specific services as previously agreed upon between the lawyer or paralegal and the client, the lawyer or paralegal is not legally permitted to transfer money out of the trust account.