Multistate Professional Responsibility Exam Practice Question
Camille is handling a new client who provided a large payment for services that have not been performed yet. She has a personal checking account, a general operating account for her law practice, and a deposit account reserved for funds that do not belong to her. Which account should contain the client’s payment?
Place the funds where client property is kept apart from the attorney’s own money
Use the general operating account until the legal services are complete
Divide the money between the operating and personal accounts for easy recordkeeping
Keep the money with personal funds and note the purpose in her financial ledger
Funds paid in advance belong to the client until the attorney earns them. The money is to be held in an account specifically kept separate from the attorney’s personal and operating accounts to avoid commingling. Placing advance fees in personal or business accounts puts them at risk of misuse, while maintaining them somewhere apart protects the client’s interest and meets ethical standards.
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