Client-Lawyer Relationship Quiz

Study Notes

Safekeeping Property - Client-Lawyer Relationship

Separate Accounts: Lawyers must maintain separate accounts for client or third-party property. This includes holding funds in a separate account located in the state of the lawyer's office or elsewhere with client consent.
Other Property: Lawyers must identify and safeguard non-funds property.
Record Keeping: Lawyers are obligated to maintain complete records of client trust account funds and other property for at least five years after the representation ends.
Lawyer Funds in Client Trust Account: Lawyers may deposit their own funds into client trust accounts only to cover bank service charges and only in an amount necessary for that purpose.
Advance Payments: Fees and expenses paid in advance by clients must be deposited into a client trust account. Lawyers can withdraw these funds only as fees are earned or expenses are incurred.
Prompt Notification and Delivery: Lawyers must promptly notify clients and third parties when they receive property on their behalf. Lawyers are expected to deliver any funds or property that clients or third parties are entitled to receive promptly, and provide a full accounting upon request.
Disputed Property: When multiple parties claim interests in property held by the lawyer, the lawyer must keep the property separate until the dispute is resolved. Undisputed portions must be distributed promptly.

Description

Test your knowledge on the ethics and regulations surrounding the safekeeping of client property in the client-lawyer relationship. This quiz covers important topics such as separate accounts, record keeping, and handling of client advance payments.