Lawyeringlaw.com Tip of the Month
Tip for July 2004
Handling Client Funds
Be extremely careful about the handling of client and third party funds. Make sure they are only held in an identifiable trust account. Reconcile the account every month to insure that no errors have been made by you or by the bank. Know exactly how much is being held for each client and keep a ledger for each client with a running balance. Make sure the aggregate amount of all client and third party funds remains in the account until disbursed to the party entitled to receive it.
For a more detailed treatment of the issues involved in handling client funds, you may wish to consult the following article by clicking on the title:
"The Misappropriation Minefield" by Thomas P. Sukowicz
This is among the dozens of articles written by lawyers of Hinshaw & Culbertson LLP's Professional Liability Group on risk management and loss prevention topics. The articles are contained in the subscription pages of this web site.