Safekeeping Funds and Other Property

Question 1

Comingling Property

Answer 1

No commingling client’s property with your own property

Question 2

Recording, Notification, and Delivery

Answer 2

Lawyer must:
Keep complete records of all money and property
Preserve records for five years after representation
Comply if client requests accounting
Promptly notify client or third party upon receipt of property in which they have interest
Promptly deliver property

Question 3

For trust accounts:

Answer 3

Firm’s money needs to be put in office account

All money that lawyer receives** in connection with** representation must be placed in a client trust fund account, including advance payments (firm can put own money in client trust account for bank services charges only)

Client trust fund account must be located in state where lawyer practices unless client consents to having it elsewhere

Question 4

Disputed Property btwn Laywer and Client

Answer 4

Must keep disputed portion in client trust account until dispute resolved

Question 5

Dispute between client and third party

Answer 5

If third party has valid claim (like a creditor with lien), must keep disputed portion of recovery in client trust account until dispute resolved

Question 6

Taking Care of Client’s Property

Answer 6

When a lawyer comes into possession of property (other than money) to be held on a client’s behalf, the lawyer must identify it as belonging to the client and must put it in a safe place. Lawyers are required to hold the property of others with the care required of a professional fiduciary.