Tip of the Month

Tip for November 2008

Handling Client and Third Party Funds

Be extremely careful when handling client and third party funds.  Read the requirements of the ethics rules applicable in your jurisdiction.  Most rules require that funds belonging to clients and third parties that are entrusted to a lawyer be placed in a separate, identifiable trust account.  Keep detailed records of the deposit, maintenance on account and disbursement of such funds.  Consult with the ethics rules for the kinds of records that are required in your jurisdiction.  Reconcile the trust account each month to insure that no errors have been made by you or by the bank.  Know exactly how much is being held for each client or third party at any time, and make sure the aggregate amount of all client and third party funds remains in the account until disbursed to the party entitled to receive it.