Except as stated in this Rule or otherwise permitted by law or by agreement with the client, a lawyer shall promptly deliver to the client or third person any funds or other property that the client or third person is entitled to receive and, upon request by the client or third person, shall promptly render a full accounting regarding such property.
Of particular concern for personal injury lawyers dealing with health insurance lien claims are the following paragraphs: It requires that a lawyer hold property of clients or third persons in a separate account maintained in an approved institution and maintain complete records of such account funds for six years after termination of the representation. Rule 1.15(I) requires that a lawyer maintain a separately identified trust account in an approved institution, and maintain records of trust account funds for at least six years. Either the attorney or an outside accountant should review or audit the account on a regular schedule. A lawyer should not assume that a staff person with long experience in another firm has any understanding of ethical rules regarding trust accounts or of accounting procedures. Where this is done, it is important to make sure the employee is well trained in trust account rules and procedures. Many practitioners delegate bookkeeping duties to an employee.
Definition of iota account professional#
Thus, close adherence to Rule of Professional Conduct 1.15 is not just a matter of what should be done.
A high percentage of State Bar discipline cases arise from mismanagement of trust accounts, particularly among financially stressed sole practitioners who may be tempted to “borrow” from client funds, and thus step onto a slippery slope that can lead to disbarment, disgrace, and disaster.
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