It is important for clients to understand that Legal Insurance works through flat fee billing, not an hourly rate billed against a retainer.
What this means is that Legal Insurance works best for certain types of matters, works less well for others, and not at all for some matters. Estate Planning is the area in which Legal Insurance works best. About 85% of MetLife Legal Plans and ARAG billing is Estate Planning. About 85% of Christopher's practice is Estate Planning, so his firm is an excellent match with Legal Insurance.
This is true, so long as Christopher is efficient in handling each case. The more time he spends, the less compensation he receives per hour — which is the exact opposite of hourly billing, where lawyers have a fundamental conflict of interest with clients because they have no incentive to be efficient. Efficiency costs hourly lawyers money.
Christopher is committed to spending the time necessary to produce an excellent product and experience for clients. He just cannot meet with clients in Zoom more than is necessary to achieve these goals; he cannot talk with clients on the phone; and he cannot answer copious, voluminous emails. Flat fee legal work is much harder for lawyers than hourly billing and much less lucrative — that is why most lawyers do not do it. Flat fee billing is the best for clients, which is why Christopher does it.
Christopher briefly worked in Las Vegas as a Divorce Attorney. His managing partner billed at $800 an hour, had $1 million in accounts receivable from clients who did not pay, and regularly sued former clients. He drove a Lexus. Christopher drives a Nissan Leaf. He is fine with that. He does not want to do to clients what that partner did.
Clients do need to do some work — carefully reviewing the draft before the meeting, making notes about questions, and telling Christopher in Zoom what changes need to be made for the document to accurately reflect their wishes. If a MetLife client pays an $8.25 premium twice a month, that is only $198 for the one-year commitment. A complete estate plan at full market price in a large Seattle firm could easily exceed $3,500 — so clients who take the initiative are getting an excellent deal.
What makes this deal possible is the approximately ten people who paid the premium and never used the service for every one person who does. Thank you to the procrastinators who never get around to doing their estate plan after signing up — they pay for everything and make the excellent deal possible for those with the initiative to do the work.
By clearly outlining what is covered and establishing communication boundaries early, we can build trust and avoid misunderstandings. You are paying for the resolution, not the hour.
Your MetLife Legal Plans coverage covers Christopher's fees for your specific legal matter in full, meaning you will not receive a bill for his time. Because you do not have to worry about an hourly clock ticking, we can focus entirely on getting the best result for your case.
Inside the Scope of Covered Services
Legal Insurance covers all attorney's fees for preparing and executing the Estate Planning documents in the draft Christopher will send. If you lose coverage, there is a 180-day window from that date to complete service — what matters is that service begins while you are covered. Please let Christopher know if you might lose coverage in the near future.
Outside the Scope of Covered Services
The following services are not covered by Legal Insurance, are specifically excluded from coverage, or are prohibited by coverage.
(1) Recording of Quitclaim Deeds, Transfer-on-Death Deeds (TODD), & Deeds of Trust
There is no relationship between the County Recorder and Legal Insurance. Christopher has a contract with Legal Insurance regarding payment of attorney's fees — Legal Insurance has no contract to pay any County Recorder. You can record real estate deeds by mail for $305.50 each (by mailing two copies, the check for the fee, and a postage-paid return envelope), which takes about 4 months. Contact the King County Recorder first if you choose to record yourself. Alternatively, Christopher can electronically record them with the King County Recorder, which takes about 1 day. Please pay the $400 per Deed cost of electronic recording via Zelle: Zelle: Chris@AttorneyMulvaney.com 425-786-3470.
Recording a TODD is a good value because a Probate could cost ten times as much as recording, and Probate requires public disclosure of real estate which may result in homes of recently deceased people being burglarized. Real estate deeds are not effective unless recorded during your life to avoid Probate. Being alive is the only requirement for recording validity, so married people often do not record until the first spouse passes away.
Caution: You must keep a copy of your Trust if you record a Deed leaving property to the Trust, name the Trust as beneficiary, or open an account in the name of the Trust. Both a paper and electronic copy should be kept since the Trust will be needed to access the assets.
(2) Preparation & Execution of Deeds Other Than Your Primary Residence
The discounted rate for preparing and executing Quitclaim Deeds or Transfer-on-Death Deeds for non-primary-residence property is $150 per Deed payable via Zelle: Zelle: Chris@AttorneyMulvaney.com 425-786-3470. Deeds other than for your primary home are not covered by Legal Insurance. This is a good value that allows you to hold a rental property in an LLC in order to limit liability and obtain other tax advantages.
(3) Tax Planning & Asset Protection — Irrevocable Life Insurance Trust (ILIT)
An ILIT removes the value of life insurance from the WA Estate Tax calculation. The discounted cost is $1,000 payable via Zelle: Zelle: Chris@AttorneyMulvaney.com 425-786-3470. You could have millions of dollars in life insurance that you re-title as owned by your ILIT and appoint a Trustee to manage the policy after you pass away. Transferring an existing life insurance policy to an ILIT has a three-year look-back period, during which the death benefit might be included in the grantor's estate — some prefer to buy a new policy under the ILIT. Christopher recommends doing an ILIT before doing WA Estate Tax Planning because it may not be necessary.
(4) Tax Planning & Asset Protection — Estate Tax Planning
Doubling the WA Estate Tax Exemption from $3 million to $6 million only applies to married people. The discounted rate for preparing and executing Estate Tax Avoidance documents is $1,500 payable via Zelle: Zelle: Chris@AttorneyMulvaney.com 425-786-3470.
The Disclaimer Sub-Trust is an excellent value — it saves $390,000 in Estate Tax on a $6 million estate, provides $150,000 per year in lifetime income to the surviving spouse with asset-protected principal, and leaves over $4 million estate-tax-free to your adult children if the surviving spouse lives for a decade after the first spouse passes. The Sub-Trust also contains a QTIP Trust which allows avoiding estate tax on up to a $2.5 million home not included in the $3 million WA Estate Tax Exemption, plus Quiet Trust Provisions that allow you to keep the total value of your estate from your beneficiaries until they reach a certain age (typically 25).
See also: Using Separate Trusts to Avoid Estate Tax (PDF) · WA Estate Tax Planning & Other Non-Covered Services (PDF)
(5) Tax Planning & Asset Protection — Stand-Alone Special-Needs Trust for a Disabled Child
If a disabled child receives Social Security Disability or other means-tested entitlements, it is important not to give gifts directly to the child but instead to create a Special Needs Trust so they do not lose their benefits. A Special Needs Trust is irrevocable and contains asset protection for the parents and the disabled child, as well as tax-related provisions. The discounted rate is $500 payable via Zelle: Zelle: Chris@AttorneyMulvaney.com 425-786-3470. You and your parents can name the Special Needs Trust as the beneficiary of your Trusts to protect the disabled child, and you can reduce your estate for estate tax purposes by giving to the Special Needs Trust during your lifetime.
(6) Excluded Matters — Legal Insurance Will Not Compensate
Pre-existing matters where an attorney-client relationship existed for the matter prior to becoming eligible for Plan services; matters in which a client has been represented by a non-plan attorney prior to seeking services for the same case from a plan attorney; farm matters, business or investment matters, matters involving property held for investment or rental, or issues when the participant is the landlord; bankruptcy services relating to a business interest; admiralty, patents, trademarks, copyrights, and income tax return preparation; appeals, class actions, interventions, amicus curiae filings, and derivative actions are not handled by Mulvaney Law Offices, PLLC.
(7) Prohibited Matters — Services Cannot Be Provided Under Any Circumstances
Disputes or proceedings related to the plan sponsor acting as an adverse party; employer or any employment-related benefit; pension plans; union matters; severance packages; unemployment compensation or workers' compensation matters; MetLife Legal Plans, Inc., Metropolitan Life Insurance Company or any affiliate, or any plan attorney; services on behalf of a spouse or dependent when the member has an adverse interest cannot be provided under any circumstances.
"Flat Fee Billing is the best for clients — which is why I do it."
— Christopher S. Mulvaney, Esq.
