Multistate Professional Responsibility Exam Practice Question
An attorney starts representing a new client and receives an advance fee before performing any legal work. The attorney is unsure how to handle this money. Which option describes a proper approach?
Deposit the advance in a separate account designated for client payments
Record the client’s advance in the firm’s operating account with detailed notes
Include the client’s advanced fee in the same operating account, labeled under the client’s name
Send the check back to the client until the attorney can justify withdrawing the money
Attorneys need to place unearned fees in a dedicated account held for client funds. This prevents mixing client money with the firm’s operating resources and ensures the attorney does not treat the funds as personal property before they are earned. Placing advanced funds in an operating account is not permissible, even if meticulously recorded, as it could lead to claims of mismanagement or commingling. Returning the check to the client is not an acceptable way to handle the funds. Finally, labeling the deposit within the operating account does not protect the client’s property or comply with the rules for safeguarding the money.
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