Paralegal Mistake #4: Trust Account Mismanagement
When a client retains the services of an attorney, they are usually asked to sign a retainer agreement and provide an initial retainer fee. The fee is then placed in the attorney’s trust account for safekeeping.
What is a trust account? It is a business checking account into which client funds are deposited.
Once the attorney begins work on the client’s case, monies are deducted from the retainer fee for the hours the attorney worked on the case.
The trust account and the law firm’s operating account funds should be kept separate at all times.
In order to properly manage the attorney’s trust account, it is important that the assistant understand the rules of their state bar. Before the assistant takes on this responsibility, it is important to check with the state bar regarding available training. If the assistant is currently managing a trust account without proper training, it’s time to rectify that by enrolling in trust account training.
Mismanaging trust account funds could result in not only the disbarment of the attorney; it could also result in possible fines being levied against the responsible assistant.
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Leslie is the author of “Legal Break-In”, an Amazon International Bestseller. Click here for more info.
And…the creator of the “Paralegal Inner Circle Class” (Get on the Wait List!) Click here.
