While it’s easy to think that closing retainer cases faster will result in earning more, ask yourself what the next step is—bringing in new cases, right? But you don’t need to hustle current cases to a close to bring in new clients. So instead of focusing your energy on wrapping things up as quickly as possible, work to build a … Read More
Who can be a signer on a trust account?
Because a trust account essentially involves a law firm or attorney holding a client’s money for them, the American Bar Association and State Bar Associations have strict rules in place to ensure that the client’s money is treated like—well, the client’s money. And not the firm’s. One of the regulated areas has to do with who can be an authorized … Read More
What Happens to the Interest in a Trust Account?
As an attorney, you know that funds in a trust account legally belong to your clients, not you or your firm. But what happens to the interest? Whose interest is it anyway? In some cases, the money being held for a client in a trust account is a significant sum or will stay in the account for a while. In … Read More
When can flat fees that haven’t been earned be taken out of a trust account?
When it comes to trust accounts, a single slip-up can get you disbarred, and yet misunderstandings abound. In a trust account, a lawyer holds the money in trust for a client – which means the money belongs to the client. You can’t take the money out until you’ve earned it. And when you do withdraw funds from a trust account, … Read More
How can we prevent fraud with our trust accounting?
It’s easy to think fraud won’t happen to you – until it does. Fraud occurs in a variety of ways, but it boils down to someone using deception to illegally take someone else’s assets. Trust account fraud is especially concerning for lawyers. Not only are attorneys personally liable for any money that goes missing from a trust account, but they … Read More
What trust accounting records should my law firm be keeping?
Trust account record requirements vary by State Bar, but all records help keep you compliant. Why? Because the funds in a trust account don’t belong to you, but you’re responsible for keeping track of every cent, including interest.[1] Bank Ledger and Records Like a highly detailed bank account statement, this ledger notes the when, how much, and why of all … Read More
What are the most common issues found during trust account audits?
Improper handling of a trust account can lead to an ethics violation, and many states conduct random audits. While some trust accounting issues are the result of a deliberate misuse of funds, many others are mistakes that result from poor record keeping or not understanding the regulations surrounding a trust account’s use. Some of the most common issues are discrepancies … Read More