By Guy Dawson, CEO
There are many practitioners who through fear of mistake and the weight of responsibility do not run a trust account. This makes client transactions difficult for them as for example they are asked on short notice to provide bank cheques for settlements. It prevents money being held in trust on account of the practitioner’s future fees for counsel, consultants and contractors. It makes management of getting in estate cash assets cumbersome.
The fear is not really justified as the rules are readily understood and managed.
The simplest way to comply with state trust account regulations is to use an approved accounting software package with appropriate written delegations and procedures. All accounting records are required to be accurate, up to date and regularly monitored. The trust account department of all Law Societies and Institutes is available to assist with any questions. The Handbook on Trust Money and Trust Records, is a comprehensive guide to the statutory trust accounting requirements contained in the Legal Profession Uniform Law Application Act 2014, and the Legal Profession Uniform Law Application Regulation 2015.
By Lawyers provides a comprehensive straightforward appreciation of trust accounting in its Practice Management Guide.