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Legal services plans offer basic legal advice and services for a fixed membership fee, with additional fees for more complex matters. They are managed by a network of attorneys and can benefit individuals and small businesses. Prospective members should research the plan’s track record, services, and costs before joining.
A legal services plan is an arrangement whereby plan members pay a fixed membership fee in exchange for a professional network of bail lawyers. Most legal services plans offer members advice on a number of basic legal matters, such as buying or selling a house or car, drafting a will, handling simple divorce proceedings or buying a small business. Other areas often covered by these service plans can include bankruptcies, adoptions, insurance claims, and landlord-tenant disputes. In general, a legal services plan is most beneficial for people who frequently have basic legal questions. Even small businesses can benefit from these plans, realizing significant cost control and access to timely legal resources.
Most legal services plans are prepaid and require members to pay annual or monthly membership fees upfront. Once the fee has been paid, members can access certain legal services as needed. Some companies, unions, and other membership groups offer employees or group members the option to join a legal services plan at a reduced cost. A family services plan may be offered by some legal services firms, allowing family members to pay reduced dues.
Generally, a legal services plan is managed by a network made up of attorneys in private practice or small law firms. Most service plans only cover basic legal matters as part of their basic service offerings, and will charge extra for more complex matters. Before signing up for a legal services plan, an individual or small business owner must fully understand the compensation scheme and what services the basic membership fee includes. Also, prospective members should know if there is an annual or monthly limit on the number of legal matters included in the membership fee.
Most plans consider basic services to include general legal advice, which is usually done over the phone. In addition, basic services typically include reviewing simple legal documents, simply preparing a will, and writing letters to an opposing party. More comprehensive services, which often require additional fees, may include probation services, bankruptcy court representation, or complicated real estate matters.
Finding the best service plan can be a challenging task and potential buyers should do their homework before shelling out any money on membership fees. A prospective legal services plan should have strong track record and be well known in the legal community. Also, the plan would allow a member to switch attorneys if the member is dissatisfied with the one assigned to her case. The plan should also spell out what services are included and explain any out-of-pocket costs a member may incur. Finally, the plan should have a mutually acceptable process for resolving any member grievances.
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