$$$ Flashcards
Property (Cash)
- Duty to protect client’s property
- safeguard (i.e. safe or deposite box) - Duty to promptly notify and deliver
- upon receiving funds/other property in which a client or 3d person has an interest - Duty to withhold = disputed claims
- kept in separate client trust account until dispute is resolved - Duty to keep good records
- keep good records, render accountings, notify client of money received on her behalf and to promptly pay money due to her
- CA Rules - must keep records of client’s property for 5 years after final distribution and make these records available to the State Bar for audit
Duty to protect client’s property
Duty to safeguard her client’s property (i.e. safe or deposit box)
Duty to promptly notify and deliver
Upon receiving funds/other property in which a client or 3d person has an interest
Duty to withhold
Duty to withhold = disputed claims
- kept in separate client trust account until dispute is resolved
Duty to keep (good) records
- keep good records, render accountings, notify client of money received on her behalf and to promptly pay money due to her
- CA Rules - must keep records of client’s property for 5 years after final distribution and make these records available to the State Bar for audit
Duty to Protect Client’s Property: Money
Client Trust Account
- atty must deposit her client’s $$ in a separate, individual interest bearing trust acct.
- this includes both advances for fees/expenses not yet incurred from the client and money received on the client’s behalf.
- the interest generated belongs to the client
Pooled Client Trust Account
- allowed for smaller funds held for shorter prior for several clients at once
- these funds must be held in a checking acct and the interest generated is first used to pay off bank service fees w/ the remainder going to the state bar to fund legal services for indigents
No Borrowing/Commingling
exception to commingling - lawyer may deposit the lawyer’s own funds in a client trust account for the sole purpose of paying bank service charges on that account, but only in an amount necessary for that purpose
Client Trust Account
- atty must deposit her client’s $$ in a separate, individual interest bearing trust acct.
- this includes both advances for fees/expenses not yet incurred from the client and money received on the client’s behalf.
- the interest generated belongs to the client
Pooled Client Trust Account
- allowed for smaller funds held for shorter prior for several clients at once
- these funds must be held in a checking acct
- the interest generated is first used to pay off bank service fees w/ the remainder going to the state bar to fund legal services for indigents
What is the exception to commingling
No Borrowing/Commingling
exception to commingling:
- lawyer may deposit the lawyer’s own funds in a client trust account for the sole purpose of paying bank service charges on that account, but only in an amount necessary for that purpose