Safekeeping Funds & Other Property

Question 1

When the lawyer is holding property or money from a client, they must:

Answer 1

1. Not comingle it with own property.
2. Be held to a fiduciary standard.
3. Put client’s money in a trust account (including advances)

If a large sum is being held for client for a long period of time, then the lawyer may open a separate account just for that client

Question 2

Duty to Record Keep, Notify, and Deliver

Rule

Answer 2

A lawyer must:
* Keep complete records of all money & property
* Preserve records for 5 years after representation
* Comply if client requests accounting
* Promptly notify client or third party upon receipt of property in their interest
* Promptly deliver property

Question 3

Disputed Property

Rules

Answer 3

Between Lawyer & Client:
* The lawyer must keep the disputed portion in the client trust account until resolved, while undisputed portion is apportioned.

Between Lawyer & Third Party:
* The lawyer must keep the disputed portion of recovery in the client trust account until third party’s valid claim is resolved.