Neil Parker Attorneys – Attorney trust account
Attorney’s Responsibility for Client Funds
In any kind of legal matter including a conveyancing transaction, an attorney has certain fiduciary obligations when it comes to client funds or property the attorney receives in the course of representing his or her client.
Firstly, an attorney who receives, maintains, or disburses client funds is always required to establish a “client trust account” or “escrow” account, separate from any account used for firm business or for any other purpose.
Second, the attorney must notify the client of the receipt of any funds or property intended for the client.
Finally, the attorney must provide a full accounting of all client funds or property, if asked to do so, and usually as a standard step in the termination of the attorney-client relationship.
An attorney is usually permitted to charge a reasonable fee for maintaining the account, but all interest earned on the attorney trust account belongs to the client.
No commingling of funds is allowed.
These monies are protected by the Attorneys Fidelity Fund which is an insurance which will pay for any loss suffered by a client whilst his monies are in the attorney trust account with the attorney.