Advocate Fees List of Categories

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How do back benefits effect fees?
What's an escrow account?
May I spend the escrow money?
What about development funds in escrow?
If I request a development fee, how do I market as no fee unless you win?
When is the development fee concept presented to the claimant?
Am I required to ask for a development fee?
Will I be reimbursed for out-of-pocket expenses associated with representing a case?
What about reimbursement for travel expenses?
How do I open an escrow account?
How do back benefits effect fees?

In an SSDI claim, an applicant may have an onset date a year or more in the past. If this claimant is found disabled from the date of onset, he may be entitled to collect back benefits in one lump sum. The advocate would be paid 25% of the total back benefit as his fee for representation.

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What's an escrow account?

An escrow account is a bank account used to store money received from clients that is held until a desired case outcome is reached.

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May I spend the escrow money?

An advocate usually may not spend funds placed into an escrow account until the case has been successfully adjudicated. The point of having an escrow account is to safely store the fee until the fee has been earned. If the case is loss, the funds are returned to the claimant.

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What about development funds in escrow?

The development is an exception to the spending rule of funds placed in escrow. You may use the development fee funds to pay for developing the case during the adjudicative process.

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If I request a development fee, how do I market as no fee unless you win?

By simply explaining the difference between a fee for representation and the development fee. If you explain why the development fee is required, most serious claimant's have no problem.

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When is the development fee concept presented to the claimant?

After you have determined that the case is viable, you'll go through a series of early case develop steps with the client. One of these steps is the explanation of your service. The development should be discussed as part of the overall service you provide.

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Am I required to ask for a development fee?

No. You may bill the client for these charges at the end of the case. If you use this approach, make sure that the claimant is made aware of this policy in your fee contract.

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Will I be reimbursed for out-of-pocket expenses?

Yes, you can be reimbursed for most out-of-pocket expenses associated with representing a case. This is true even if you do not win the the case. Typical out-of-pocket expenses associated with representing a disability claim are for medical records and communications. Communications includes such things as certified mail and long distances phone calls.

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What about reimbursement for travel expenses?

You can be reimbursed for reasonable costs associated with the representation of a Social Security disability claim within your state. This would include reimbursement for travel expenses such as hotel, local transportation and dinning costs. To learn more about Social Security's rules for reimbursement of travel expenses, visit www.ssa.gov.

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How do I open an escrow account?

There are two ways to open an escrow account. You can open a formal escrow account at any bank. The downside is the costs. There are a number of unnecessary fees associated these formal accounts. Your other option is to open a regular savings account with a checking writing option, and use it exclusively as an escrow account. The escrow account must be separate from your businesses checking accounting.

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