What term describes fees charged per hour, or any portion of an hour that an attorney works on a file?

• A. Transactional fees or flat fees
• B. Springing power of attorney
• C. Principal
• D. Hourly fees

Answer: (D)

Billing by time is the concept at play here. Hourly fees describe fees charged per hour, or any portion of an hour, that an attorney spends working on a file. This time-based approach fits estate planning and probate tasks because the amount of work can vary—from drafting documents to meetings, filings, and court appearances—so the bill accumulates based on actual time spent multiplied by the attorney’s hourly rate.

In contrast, flat or transactional fees are fixed for a defined task, not tied to the exact time spent. A springing power of attorney is a type of document that becomes effective upon a condition, not a billing method. A principal is the person who gives authority in a power of attorney or grantor in a trust. So the term that best describes charging per hour is hourly fees.