Multistate Professional Responsibility Exam Practice Question
A client provides an attorney with advanced payments for filing costs and advises that these funds be stored in a distinct account that pays interest to the client. The attorney considers placing them in a general account along with fees received from other clients for convenience. Which choice reflects the most proper way to handle these funds?
Invest the funds in the attorney’s private brokerage portfolio
Place the funds in a dedicated account, separate from the law firm’s operating funds
Use the funds for the next billing statement before costs are incurred
Deposit the funds in a personal account while adjusting the firm’s ledger
Professional rules recommend that money entrusted by a client be kept apart from the attorney’s personal or operating accounts. A dedicated account prevents accidental or intentional commingling of client funds and ensures clear records. An attorney should not store the client’s money in a personal account, invest it for the attorney’s benefit, or use it to pay invoices unless the fees have been earned. A separate account aligns with the lawyer’s responsibility to safeguard client property and maintain accurate bookkeeping.
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