Monday, May 10, 2010

Why you need legal help

We are likely to need legal help at least once a year, yet most of us do

not actively seek legal help.



This is borne out of data from a survey

conducted by Leo J. Shapiro & Associates, on behalf of the American Bar

Association’s Section of Litigation, which shows that close to three

quarters of American adults experience some event during a twelve-month

period that may require the services of a lawyer. Over half of those who

needed an attorney chose not to hire one, and close to 80% of those yet to

experience legal problems gave strong indications they might go down the

same route.



Why all the doom and gloom? Price is the most sticking point

for most consumers. When it comes to hiring a lawyer, hourly fees of $100

up to $1000 are out of reach of most people’s budget. And then comes the

trepidation of searching for a good attorney and the right service: there

is a lot of uncertainty and confusion as what a lawyer will do, and how to

tell the good from the bad.



A legal plan may solve these problems and change the way you think of legal

services. Thanks to this arrangement, you can now talk to a lawyer whenever

you have a problem, without fear this will leave you out of pocket. In

fact, you don’t even need to be embroiled in a legal problem to get legal

advice: just pick up the phone, call your attorney and get the necessary

legal advice susceptible of resolving any potential problems –with

professional legal advice and follow-up, you can prevent ninety percent of

your legal questions becoming legal problems. Basic services such as the

drafting of your will, review of sample health contracts and writing

letters on your behalf are handled at no cost to you. If you want further

coverage to include family problems, such as a divorce or custody of

children, and any legal representation in court, then you simply pay a

premium and get more inclusive coverage.



Even if your plan doesn’t cover complex legal matters, it can still save

you money on those sky-high attorney fees. Discounts of up to 20% are

offered on hourly and flat rates. Ultimately, it’s not all down to how much

you can save. Having an attorney readily available at all times gives you

peace of mind, in the knowledge that there is someone you can use on

retainer for advice and help on anything of legal nature.

Sunday, May 9, 2010

Who regulates pre-paid legal plans?

Pre-paid legal service providers are required to provide either a written

agreement of the services provided in their plans, or at least a written

communication concerning the services covered, together with the fees to

be charged for services not covered in the written agreement of membership.



However, most people gloss over “terms and conditions” and just sign the

agreement assuming they are covered for most legal services. This usually

gives rise to frequent complaints about the service, fee disputes and

complaints about attorneys.



Generally, if you have any complaint with your service, you should first

address any such complaint with your service provider. Contact them to get

information regarding their in-house complaint process and settlement of

disputes. If you are unsatisfied, then it helps to know who regulates your

kind of legal insurance.



Your state’s Department of consumer affairs licenses and regulates all

pre-paid legal plans. Prepaid legal service companies are required to

register with the department prior to commencing business and appoint a

sales representative. Further regulation can be provided by your local bar

Saturday, May 8, 2010

Who is involved in Legal services?

When you subscribe to a pre-paid legal service, you are likely to deal

with an attorney and a number of other individuals and organisations who

are involved in one way or another with the service. It’s important to

understand the role of each participating party in a legal service plan,

particularly when you’re unhappy with the service or when fee disputes or

any other litigation with your provider arises.



So, who is involved in your pre-paid legal arrangement?



Your Lawyer



You get to choose your attorney from a pool of attorneys in the network.

Your lawyer is your point of contact for any phone advice or office

consultation. He is the one who furnishes other legal services specified

in your written agreement with your provider: he drafts your will, reviews

simple contracts for you, writes letters on your behalf and makes phone

calls to adverse third parties.

If you are unsatisfied with the quality of work you are getting from your

current attorney in the network then you have the choice of choosing

alternate attorneys. You can also make a complaint to your provider’s

in-house charge of complaints.



If you benefit from legal services under a group plan scheme then there are

a number of parties who are involved in this scheme.

First the contracted firm, just as is the case with an individual plan, is

the one which provides all the legal help through its network of attorneys.

There are also two parties involved in the deal: a plan administrator and a

plan sponsor.



A plan sponsor is the organisation you are member of, which sponsors your

legal plan. Your sponsor can either choose to provide the legal services as

a fringe-benefit, as is the case with most employers, pre-charge for the

service - universities usually charge for any legal service as part of

tuition fees – or charge low-costs, as do trade unions under a

group-bargaining scheme.



Your plan administrator is the person appointed by your sponsor to arrange

for the panel of lawyers from the contracted firm to provide services,

collects all the fees paid into a pre-paid plan, publicizes the plan and

handles enrolment and marketing. The administrator may be a an employee of

the sponsor, an insurance company or an outside firm.



Regulating Authority



Authorities that regulate pre-paid plans provide you with an outline of how

pre-paid legal services are managed and also an outlet in case there are

any complaints.

Individual pre-paid legal plans are generally regulated by your state

department of consumer affairs.

If you are an employee participating in a group plan funded by your

employer, then the legal services are covered and regulated under the

deferral Employee Retirement Income Security Act (ERISA).

Friday, May 7, 2010

Types of Prepaid Legal Services

Over 100 million Americans are signed up for pre-paid legal services. Also

called legal insurance, these plans are similar to those provided by Health

Maintenance Organizations (HMOs) and cover the legal needs of the member,

spouse and any dependent children.



In a prepaid legal service plan, the customer pays a fixed monthly

subscription fee of up to $25 for the services of pre-selected lawyers.

The most basic plans provide advice and consultation by telephone. Plan

members receive a few hours of free office consultation with their assigned

attorney. They may also include review and advice on simple legal documents,

preparation, drafting or an update of a simple will. Phone calls and letters

can be written on behalf of members, a service helpful for credit problems

and consumer protection.

More comprehensive plans cover clients’ personal legal needs ranging from

services that require more time and effort on the part of your attorney,

such as contracts, wills and deeds, to legal representation in negotiations

and courts cases related to family matters, bankruptcy and real estate

Thursday, May 6, 2010

Types of Legal Plans

A prepaid legal plan is a scheme based on the payment in advance of a set

fee to defray the cost of providing future legal services to the members

enrolled in the scheme. They vary in cost, scope of legal coverage provided

and how the legal services are provided. We will look at the different

types of pre-paid legal plans available in the United States and how to

enrol into them



An individual pre-paid legal plan is readily accessible to the general

public. There are two types of individual plans: access and comprehensive.

An access pre-paid legal plan is the most basic plan. It is designed to

give easy access to lawyer and a set of simple legal services for a low

cost. Basic services furnished include unlimited toll-free phone access to

your attorney for consultation and advice, letters written by the lawyer on

your behalf, brief office consultation and the drafting or review of simple

legal documents.



Complex legal issues not covered will be subject to an hourly or flat rate

negotiatable with your provider



The comprehensive plan goes beyond basic legal services, to offer more

complex and comprehensive coverage for a premium in cost. Generally, all

the benefits of an access plan are provided at no cost to you, plus a

broader range of services like drafting complicated legal documents,

negotiations with adverse parties, legal representation in court cases such

as divorce and child custody. They also cover all the costs involved in a

legal litigation. Comprehensive plans typically start at $300 per year and

are most beneficial to middle-class families.



A group legal plan is typically sponsored by an organization as a fringe

benefit to its members. The lawyer or law firm contracted provides free or

low-cost legal coverage to all members of the sponsoring organization.

Employers, labour unions and even universities are now increasingly

offering group legal plans to enhance the value of their benefits package

and reduce the cost of administrative burden. Law firms are contracted to

provide participating members telephone and office consultation for their

most frequently needed legal matters. These typically include: Preparation

of wills and trusts, document preparation and review, debt and real estate

matters and family law.



Additional legal coverage can be contracted according to a fee schedule

negotiable between the plan sponsor and provider, and publicised to

participating members.

Wednesday, May 5, 2010

The access legal plan

Pre-paid legal plans come in a variety of types depending on the scope of

legal coverage they provide.



The most basic pre-paid plan is designed to make the simple legal services

readily available to the general public at low cost. These plans typically

cost between $10 and $30 per month, billed in advance.

You get unrestricted toll-free number telephone access to a lawyer for

legal advice and consultation. You can also make brief office consultations

to talk to your lawyer about any legal problems you may be encountering.

Your lawyer can also write to letters or make phone calls on your behalf.

This can help resolve many problems before they escalate further.

Other services provided are not overly time-consuming: the drafting of your

will to distribute your property after your death, review of your trust and

any other simple legal document.



If you require any other service beyond the scope of a basic plan, then you

can either pay discounts on regular lawyer fees or pay a premium to upgrade

to a more comprehensive plan.

Tuesday, May 4, 2010

Pre-paid legal plans promote preventive law.

Many people believe they need the services of a lawyer, under a pre-paid

legal service scheme, to solve a legal problem or resolve an intricate

situation. Often, your lawyer’s most valuable help could be before you

get involved in legal trouble.



When you sign up for a pre-paid legal plan, you have the right to unlimited

toll-free telephone access to your attorney. The sound advice and

consultation given to you by your lawyer will help you take the necessary

steps to detect and resolve any potential legal problems before they take

more dangerous proportions. This is called in legal jargon “therapeutic

jurisprudence” or “preventive law”. Just as preventive medicine helps

prevent disease by detecting their symptoms, preventive law helps prevent

serious legal consequences by detecting early problems. In an increasingly

litigious society, there is real concern that assets you have worked long

and hard to accumulate may be attacked by creditors and litigants, through

no fault of your own. By the time a potential claim or liability is

identified, it is too late to act.

A competent attorney’s advice is your best option to minimize your exposure

to potential risks and protect yourself from legal problems getting out of

Monday, May 3, 2010

Prepaid and Small Business

Legal advice for small businesses does not have to be expensive. With

pre-paid legal plans, a wide array of legal services designed specifically

to cater for the needs of small businesses is available for a set yearly

fee ranging from $125 to $300.



Although coverage differs across the board, most pre-paid plans offer

unlimited telephone consultation with a lawyer, a valuable service that is

enough to solve many small-business matters. This encourages

“preventive law”: the process whereby you identify legal problems that

affect your business, contact your lawyer and get advice on taking steps to

minimize them.



Basic plans provide coverage for simple contracts and the drafting of

simple legal documents, like a power of attorney or a bill of sale. More

comprehensive plans will deal with more elaborate matters like equipment

lease and accounts-receivable collection work.



If you are a member of a local chamber of commerce, trade or professional

group than you can get a plan at a reduced group rate. Otherwise, buy

directly from a commercial vendor.

Sunday, May 2, 2010

Pre-paid legal services for small business

If you are operating your own business, you cannot afford to go it alone

when it comes to legal matters. The ever increasing complexities of law,

spiralling costs of lawsuits and the proliferation of government red tape

can land you in a lot of trouble.



The flip of the coin is hardly attractive either! Hiring a lawyer can

constitute a substantial financial investment many cash-strapped small

businesses and entrepreneurs cannot sustain. Lawyers charge a minimum of

$200 per hour when it comes to “business law” and it can get very

costly if you are involved in lengthy legal procedures, complicated

contracts or business transactions.



There may just be a glitter of hope in pre-paid legal plans. For a set

monthly price, some legal providers are now bundling a whole suite of

legal services especially tailored to the needs of small-businesses.

Whether you need phone consultation on the legal complexities of a lease

contract, or require legal representation during tax audits, a pre-paid

plan can help you manage legal costs. An array of services is included as

“standard coverage” at no cost to you in the plan, and any legal matters

not covered can be provided with a discount on fees.



Before you take the leap, you need to keep some caveats in mind.



You need to know more about the quality of service you are likely to get.

While lower fees do not necessarily infer lower quality of work, it is

always necessary to bear in mind that legal specialization plays a crucial

part and lawyers are not interchangeable. Ask for references from previous

clients or ask entrepreneurs who’ve used the services of the provider about

the quality of work they have received from them. Use your state bar

association, service organizations in your locale and your local Better

Business Bureau to research law firms and the background of the attorneys

in the network before selecting them. Things to look for are the number of

years they have been operating, complaints from previous customers, the

education background of attorneys, professional track record and so forth.

With the increasing amount of small businesses involved in litigation and

fee disputes with their legal providers, I iss important to give some

thought to alternative courses of actions when dealing with disputes. Ask

your prospective provider about the way in which they settle disputes or

complaints. Do they have an in-house procedure to deal with complaints,

appoint a senior attorney to deal with such things or do you simply have to

Saturday, May 1, 2010

Look before you take the leap into pre-paid legal services

Choosing a pre-paid legal plan is a good way to save big bucks, but

choosing a plan you need and a provider you can trust is a different

matter. Here is a number of things to look for in a legal plan from the

very start:



Look for what’s covered: Legal plans are offered in different models and

differ in the specifics of what they cover. While phone consultation and

simple drafting and reviewing of simple contracts are included across the

board, more elaborate and complicated legal matters are not covered.

It’s best to review your own legal needs before you choose a legal plan.

Ask which legal services will you need most and then choose a plan that

provides the best coverage given those needs. For instance, if you are a

business owner, lawsuits, lease and contract negotiations could be high on

your list and you would be looking for a legal plan that provides coverage

accordingly.



Know what legal coverage you already have Don’t pay for coverage twice! If

you have car insurance, then you are covered for liability and medical

protection, home insurance covers you for injuries sustained on your

property… Your existing insurance policies already cover some of your

legal costs and there is no need to pay for that coverage when you select

with a legal plan.



Does the company have an in-house procedure to handle complaints? One of

the stumbling blocks of pre-paid legal services is quality of service.

Newly-licensed attorneys, phone calls not getting answered and that

ointment on any client –lawyer relationship: fee disputes, typically

involving bills made to your credit car to cover for services not included

in your contract… This is just a specimen of the many problems people face

with their plan providers.

Make sure you select a plan that has clear guidelines as to how to settle

dispute when they arise. A company that has a good in-house mechanism to

handle complaints will generally assign a senior attorney with the

authority to handle customer complaints of and disputes with any attorneys

in the network. Secondary sources of resolution may include your state

insurance department or bar association. Check their outlet for complaints

against pre-paid services.



Checking out the business you’ll need to do some homework before you

select your legal provider. Ask these questions: What’s the firm’s

reputation in my area? How many years have they been in business? Have they

been operating in my local area for at least a year without complaints? How

skilled are they attorneys? Do they cover the locale where my business

operates? Some good places to start your background research are your state

bar association, the Better Business Bureau and the Consumer Affairs