$$$

Question 1

Property (Cash)

Answer 1

1. Duty to protect client’s property
   - safeguard (i.e. safe or deposite box)
2. Duty to promptly notify and deliver
   - upon receiving funds/other property in which a client or 3d person has an interest
3. Duty to withhold = disputed claims
   - kept in separate client trust account until dispute is resolved
4. 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

Question 2

Duty to protect client’s property

Answer 2

Duty to safeguard her client’s property (i.e. safe or deposit box)

Question 3

Duty to promptly notify and deliver

Answer 3

Upon receiving funds/other property in which a client or 3d person has an interest

Question 4

Duty to withhold

Answer 4

Duty to withhold = disputed claims

- kept in separate client trust account until dispute is resolved

Question 5

Duty to keep (good) records

Answer 5

• 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

Question 6

Duty to Protect Client’s Property: Money

Answer 6

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

Question 7

Client Trust Account

Answer 7

• 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

Question 8

Pooled Client Trust Account

Answer 8

• 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

Question 9

What is the exception to commingling

Answer 9

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