The possibility of being selected for a random trust account audit can be stressful, but understanding how the process works can alleviate some of the anxiety. Receiving notice. Typically, notices for audits are mailed, and the amount of notice given varies by state. In New Jersey for example, audit notices normally arrive ten days to […]

Law firms either bill as work is done (e.g., monthly, quarterly, or at predetermined milestones) or by using a retainer model. The three retainer models most frequently used by law firms are: General retainers Flat fees or advance payment retainers Security retainers General retainers secure a lawyer’s services for a particular period of time, and […]

Client trust accounts are special bank accounts used by attorneys to hold deposits paid by clients for future services. These funds can’t be withdrawn from the account until an attorney or law firm’s fees are earned and the client is given an invoice[1]. For cases involving a large dollar amount or where funds will be […]

Establishing a client trust trust account for your law firm means designating signatories. Signatories are able to sign for account-related tasks such as issuing checks or withdrawals from the account. Before establishing any signatory, consider the significant responsibility entrusted to you with your client trust accounts. Lawyers are obligated to protect the funds and property […]

When opening a trust account, what name to put on the account can cause some confusion. Attorneys often wonder what the name should be, especially depending on whether or not the trust account is an IOLTA account with multiple client funds in it or a single client trust account. Should the account name be: The […]

As part of proper trust account record keeping, law firms are required to keep copies of deposit slips associated with the account. In the event of an audit, these slips help to create a paper trail to verify what your books say. Without them, an auditor could be left wondering what actually happened with the […]

When you develop your pricing structure and client payment options for your law firm, you’ll need to evaluate a number of issues. Hourly billing, contingency fees, alternative fee structures, and more. However, questions often arise over one topic in particular: the differences between flat fee agreements and a retainer. For firms using a flat fee […]

Retainers are helpful resources for law firms to manage their client’s payments. Not only do they provide funds to kick start their working relationship, but they also make it easier to pay invoices. Retainers are often paid into an Interest on Lawyer Trust Accounts (IOLTAs). Attorneys are entitled to pay themselves out of the account […]

As a law firm grows, a lawyer’s ability to handle all of the tasks that go along with it becomes increasingly difficult. At a certain point, you may need to bring on others to help with things like billing, accounting and client trust accounts. But who can actually access those accounts? What the rules say […]

Client trust accounts are common for law firms. But how do you know when a client should have their own individual trust account rather than keeping all client funds in a single trust account? With a typical Interest of Lawyers Trust Account (IOLTA), all the funds of clients are kept in a single trust account. […]