Retainer
An upfront payment deposited with an attorney, held in a trust account and drawn down as work is performed at the agreed hourly rate.
A retainer is an advance payment that a client deposits before legal work begins. The attorney holds the funds in a client trust account (IOLTA account) — they cannot be used until earned. As the attorney works, fees are transferred from the trust account to the attorney's operating account. When the retainer is exhausted, the attorney typically requests replenishment.
Retainers serve two purposes: they ensure the attorney gets paid (reducing bad-debt risk) and they demonstrate the client's commitment to the matter. Retainer amounts vary by case complexity — a simple contract review might require a $1,000 retainer, while complex litigation might require $10,000–$25,000 upfront.
At conclusion of the matter, any unused retainer funds must be returned to the client. If you fire an attorney mid-matter, the unused portion of your retainer should be refunded after deducting earned fees and costs. Always get a detailed accounting if you end the relationship.
Real-World Example
The business owner paid a $7,500 retainer for contract negotiation; after 18 hours at $350/hour ($6,300) and $200 in filing costs, she received a $1,000 refund when the matter closed.