Lawyer Trust Account

Question 1

LTA Must Be

Answer 1

clearly defined and designated as a LTA, must be separate from other accounts

Question 2

Seven Principles of an LTA

Answer 2

If money belongs to client give it back, if client wants Attorney to hold money put it in LTA, if client wants Attorney to hold property lock it up, If money belongs to Attorney get it out of LTA, Ownership of money disputes leave money in LTA and mark it as such, obligation to notify client promptly of accounting, Attorney can leave small amount of money LTA for bank charges

Question 3

Special Situations: Fees and Costs Paid In Advance

Answer 3

Funds from a retainer agreement PUT IN LTA

Exception: fees paid in advance which are non-refundable put in office account. If Attorney and Client have a clear written agreement that this isn’t a retainer agreement.