$$$ Flashcards

1
Q

Property (Cash)

A
  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
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2
Q

Duty to protect client’s property

A

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

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3
Q

Duty to promptly notify and deliver

A

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

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4
Q

Duty to withhold

A

Duty to withhold = disputed claims

- kept in separate client trust account until dispute is resolved

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5
Q

Duty to keep (good) records

A
  • 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
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6
Q

Duty to Protect Client’s Property: Money

A

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

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7
Q

Client Trust Account

A
  • 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
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8
Q

Pooled Client Trust Account

A
  • 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
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9
Q

What is the exception to commingling

A

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

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