When in doubt, trust account? [1 Attachment]
Posted: Thu Jan 07, 2010 1:04 pm
X-eGroups-Edited-By: easky1
I don't have a trust account. My understanding is that the client trust
account is solely for the purpose of holding funds for your client in trust.
Other lawyers have advised that there is also a threshhold minimum amount of
funds held in trust for a client before the requirement for a trust account
is required. Our work and fees should not require a trust account, for the
most part.
Now, my fee agreement states that my fees become fully earned the moment I
commence work on their case; whether the client has paid them or not.
If I am in any way wrong, I blame my mentor. :snicker:
Christine
On Wed, Jan 6, 2010 at 9:02 PM, Matthew Gary Evans wrote:
>
> [Attachment(s)from Matthew Gary Evans included below]
>
> Heres an excerpt from the State Bars own trust accounting handbook,
> which is attached and also available on the bars website somewhere. The
> excerpt is from page 3:
>
>
>
> You can't *keep *any money belonging to you or your law firm (other than
> money for bank
>
> charges) in any of your client trust bank accounts. This is also known as
> commingling. That
>
> means that when you're holding client money that includes your fees, you
> have to take those
>
> fees out of the client trust bank account *as you earn them*. It's not a
> matter of your
>
> convenience; you are ethically required to withdraw your money from that
> account as soon as
>
> you reasonably can. (In fact, it would be a good idea for you to withdraw
> your fees on a
>
> regular basis, perhaps when you do your monthly reconciliation. See *
> Reconciliation*, page
>
> 27. See also, State Bar Formal Op. No. 2005-169, Appendix 6, page 87.)
>
> Money held in a client trust bank account becomes yours and not the
> client's as soon as, in
>
> the words of rule 4-100(A)(2), your interest in that portion becomes
> fixed. BUTand this
>
> is a big butyou can't withdraw any fees that the client disputes. As far
> as you're concerned,
>
> from the moment a client disputes your fee, that money is frozen in the
> client trust bank
>
> account until the fee dispute is resolved. As soon as your interest becomes
> fixed and is not in
>
> dispute, you are obligated to withdraw that money promptly from the client
> trust bank
>
> account. (See Appendix 3, page 71, for references to disciplinary cases and
> State Bar
>
> Formal Opinion 2006-171 which discuss the issue of a redeposit of funds
> withdrawn from a
>
> trust account.)
>
>
>
> ____________________________________
>
> Law Office of Matthew Gary Evans
>
> Matthew Gary Evans, Esq.
>
> 16 North Marengo Avenue, Room 219
>
> Pasadena, California 91101
>
> Tel.: (626) 405-9448
>
> Fax: (626) 768-7565
>
> Cell: (213) 842-6645
>
> Email: matthew@matthewgaryevanslaw.com
>
> www.matthewgaryevanslaw.com
>
> www.matthewgaryevanslaw.net/Bankruptcy
>
> please visit my blog at matthewevanslaw.wordpress.com
>
>
>
> Member: California State Bar, American Bar Association, Consumer Attorneys
> Association of Los Angeles, Central District Consumer Bankruptcy Attorneys
> Association, National Association of Consumer Bankruptcy Attorneys, Pasadena
> Chamber of Commerce
>
> NOTICE: This message is intended only for the individual named. If you are
> not the named addressee please do not disseminate, print, or copy this
> e-mail. Please notify the sender immediately by reply e-mail if you have
> received this e-mail by mistake and delete this e-mail from your system.
> Thank you.
>
>
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
> Of *Holly Roark
> *Sent:* Tuesday, January 05, 2010 7:17 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] When in doubt, trust account?
>
>
>
>
>
> This is a practice question.
>
> It is my understanding that since we do flat fee work that technically our
> fees are all "earned" at the time we are retained and so can be deposited
> directly into our operating accounts. (My retainer says all fees are fully
> earned and nonrefundable for services rendered and for taking on the
> responsibility of representation.) As a practical matter, however, if
> someone is going to pay in installments, it seems that maybe those should go
> into the trust account until the full retainer fee is all paid up, or at
> least the installments should not be transferred to the operating account
> until a certain amount of work is performed to truly "earn" the fees. I know
> that contradicts the "fully earned" language, but I am just thinking out
> loud. It seems that if it is going to take a few months for the client to
> file, then it should be earning a least a little interest.
>
> Does anyone care to share how they handle flat fee work and the trust
> account?
>
> Holly Roark
> holly@roarklawoffices.com
>
>
>
Christine A. Wilton
Law Office of Christine A. Wilton
4067 Hardwick Street, #319
Lakewood, CA 90712
Toll Free: 877-207-6013
Cell: 562-824-7563
Fax: 562-804-4028
attorneychristine@gmail.com
Web: www.attorneychristine.com
Blog: www.losangelesbankruptcylawmonitor.com
***************************
This e-mail and any files transmitted with it are private and confidential
and are solely for the use of the addressee. It may contain material which
is legally privileged. If you are not the addressee or the person
responsible for delivering to the addressee, be advised that you have
received this e-mail in error and that any use of it is strictly prohibited.
Now, my fee agreement states that my fees become fully earned the moment I commence work on their case; whether the client has paid them or not.
Christine
On Wed, Jan 6, 2010 at 9:02 PM, Matthew Gary Evans <matthew@matthewgaryevanslaw.com> wrote:
[Attachment(s) from Matthew Gary Evans included below]
Heres an excerpt from the State Bars own trust accounting handbook, which is attached and also available on the bars website somewhere. The excerpt is from page 3:
You can't keep any money belonging to you or your law firm (other than money for bank
charges) in any of your client trust bank accounts. This is also known as commingling. That
means that when you're holding client money that includes your fees, you have to take those
fees out of the client trust bank account as you earn them. It's not a matter of your
convenience; you are ethically required to withdraw your money from that account as soon as
you reasonably can. (In fact, it would be a good idea for you to withdraw your fees on a
regular basis, perhaps when you do your monthly reconciliation. See Reconciliation, page
27. See also, State Bar Formal Op. No. 2005-169, Appendix 6, page 87.)
Money held in a client trust bank account becomes yours and not the client's as soon as, in
the words of rule 4-100(A)(2), your interest in that portion becomes fixed. BUTand this
The post was migrated from Yahoo.
I don't have a trust account. My understanding is that the client trust
account is solely for the purpose of holding funds for your client in trust.
Other lawyers have advised that there is also a threshhold minimum amount of
funds held in trust for a client before the requirement for a trust account
is required. Our work and fees should not require a trust account, for the
most part.
Now, my fee agreement states that my fees become fully earned the moment I
commence work on their case; whether the client has paid them or not.
If I am in any way wrong, I blame my mentor. :snicker:
Christine
On Wed, Jan 6, 2010 at 9:02 PM, Matthew Gary Evans wrote:
>
> [Attachment(s)from Matthew Gary Evans included below]
>
> Heres an excerpt from the State Bars own trust accounting handbook,
> which is attached and also available on the bars website somewhere. The
> excerpt is from page 3:
>
>
>
> You can't *keep *any money belonging to you or your law firm (other than
> money for bank
>
> charges) in any of your client trust bank accounts. This is also known as
> commingling. That
>
> means that when you're holding client money that includes your fees, you
> have to take those
>
> fees out of the client trust bank account *as you earn them*. It's not a
> matter of your
>
> convenience; you are ethically required to withdraw your money from that
> account as soon as
>
> you reasonably can. (In fact, it would be a good idea for you to withdraw
> your fees on a
>
> regular basis, perhaps when you do your monthly reconciliation. See *
> Reconciliation*, page
>
> 27. See also, State Bar Formal Op. No. 2005-169, Appendix 6, page 87.)
>
> Money held in a client trust bank account becomes yours and not the
> client's as soon as, in
>
> the words of rule 4-100(A)(2), your interest in that portion becomes
> fixed. BUTand this
>
> is a big butyou can't withdraw any fees that the client disputes. As far
> as you're concerned,
>
> from the moment a client disputes your fee, that money is frozen in the
> client trust bank
>
> account until the fee dispute is resolved. As soon as your interest becomes
> fixed and is not in
>
> dispute, you are obligated to withdraw that money promptly from the client
> trust bank
>
> account. (See Appendix 3, page 71, for references to disciplinary cases and
> State Bar
>
> Formal Opinion 2006-171 which discuss the issue of a redeposit of funds
> withdrawn from a
>
> trust account.)
>
>
>
> ____________________________________
>
> Law Office of Matthew Gary Evans
>
> Matthew Gary Evans, Esq.
>
> 16 North Marengo Avenue, Room 219
>
> Pasadena, California 91101
>
> Tel.: (626) 405-9448
>
> Fax: (626) 768-7565
>
> Cell: (213) 842-6645
>
> Email: matthew@matthewgaryevanslaw.com
>
> www.matthewgaryevanslaw.com
>
> www.matthewgaryevanslaw.net/Bankruptcy
>
> please visit my blog at matthewevanslaw.wordpress.com
>
>
>
> Member: California State Bar, American Bar Association, Consumer Attorneys
> Association of Los Angeles, Central District Consumer Bankruptcy Attorneys
> Association, National Association of Consumer Bankruptcy Attorneys, Pasadena
> Chamber of Commerce
>
> NOTICE: This message is intended only for the individual named. If you are
> not the named addressee please do not disseminate, print, or copy this
> e-mail. Please notify the sender immediately by reply e-mail if you have
> received this e-mail by mistake and delete this e-mail from your system.
> Thank you.
>
>
>
> *From:* cdcbaa@yahoogroups.com [mailto:cdcbaa@yahoogroups.com] *On Behalf
> Of *Holly Roark
> *Sent:* Tuesday, January 05, 2010 7:17 PM
> *To:* cdcbaa@yahoogroups.com
> *Subject:* [cdcbaa] When in doubt, trust account?
>
>
>
>
>
> This is a practice question.
>
> It is my understanding that since we do flat fee work that technically our
> fees are all "earned" at the time we are retained and so can be deposited
> directly into our operating accounts. (My retainer says all fees are fully
> earned and nonrefundable for services rendered and for taking on the
> responsibility of representation.) As a practical matter, however, if
> someone is going to pay in installments, it seems that maybe those should go
> into the trust account until the full retainer fee is all paid up, or at
> least the installments should not be transferred to the operating account
> until a certain amount of work is performed to truly "earn" the fees. I know
> that contradicts the "fully earned" language, but I am just thinking out
> loud. It seems that if it is going to take a few months for the client to
> file, then it should be earning a least a little interest.
>
> Does anyone care to share how they handle flat fee work and the trust
> account?
>
> Holly Roark
> holly@roarklawoffices.com
>
>
>
Christine A. Wilton
Law Office of Christine A. Wilton
4067 Hardwick Street, #319
Lakewood, CA 90712
Toll Free: 877-207-6013
Cell: 562-824-7563
Fax: 562-804-4028
attorneychristine@gmail.com
Web: www.attorneychristine.com
Blog: www.losangelesbankruptcylawmonitor.com
***************************
This e-mail and any files transmitted with it are private and confidential
and are solely for the use of the addressee. It may contain material which
is legally privileged. If you are not the addressee or the person
responsible for delivering to the addressee, be advised that you have
received this e-mail in error and that any use of it is strictly prohibited.
Now, my fee agreement states that my fees become fully earned the moment I commence work on their case; whether the client has paid them or not.
Christine
On Wed, Jan 6, 2010 at 9:02 PM, Matthew Gary Evans <matthew@matthewgaryevanslaw.com> wrote:
[Attachment(s) from Matthew Gary Evans included below]
Heres an excerpt from the State Bars own trust accounting handbook, which is attached and also available on the bars website somewhere. The excerpt is from page 3:
You can't keep any money belonging to you or your law firm (other than money for bank
charges) in any of your client trust bank accounts. This is also known as commingling. That
means that when you're holding client money that includes your fees, you have to take those
fees out of the client trust bank account as you earn them. It's not a matter of your
convenience; you are ethically required to withdraw your money from that account as soon as
you reasonably can. (In fact, it would be a good idea for you to withdraw your fees on a
regular basis, perhaps when you do your monthly reconciliation. See Reconciliation, page
27. See also, State Bar Formal Op. No. 2005-169, Appendix 6, page 87.)
Money held in a client trust bank account becomes yours and not the client's as soon as, in
the words of rule 4-100(A)(2), your interest in that portion becomes fixed. BUTand this
The post was migrated from Yahoo.