Subscription-based legal services are making their way into lawyer’s practices across the country. There’s even a podcast and at least one startup software company dedicated to lawyers using these fee arrangements. Fortunately for Texas lawyers, The Professional Ethics Committee for the State of Bar of Texas recently set out guidelines for us to follow if we want to offer subscription services. 

First, the fee must be kept in the lawyer’s trust account and segregated from other fees until each fee period ends. Lawyers typically collect subscription fees monthly or annually under agreements that require the fee to be paid in advance. The Committee has made clear that these fees must be segregated until the end of the fee period. 

Second, the fee is refundable if the client cancels during the fee period and cannot be made non-refundable, even with the client’s consent, unless the entirety of the fee…