Check a trust ledger kept in the practice's own name
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Copy the name on the ledger, the date money was transferred into it, the date it was withdrawn from the general trust account, and what the file says the money is for. Do not decide that the ledger is authorised.
- What the lawyer must review
- The lawyer decides whether the ledger is one rule 49 allows. A practice must not keep a trust ledger in its own name, or in the name of a legal practitioner associate, except as the rule authorises. It may keep a ledger in the practice's name only to aggregate, by transfer from other trust ledgers, money properly due for legal costs. That money must be withdrawn from the general trust account not later than one month after the day it was transferred into that ledger. It may keep a ledger in an associate's name only for money in which the associate has a personal and beneficial interest as vendor, purchaser, lessor or lessee, or in another similar capacity. That money must be withdrawn from the general trust account at the conclusion of the matter. Whether the costs were properly due, and whether an associate's interest is of that kind, are decisions for the lawyer. The bill and the authority for a transfer to the office account are checked as well. This task is the limit on keeping the ledger and on how long the money may sit there.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | Do not begin AI assistance until the responsible lawyer has defined and confirmed its permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Count one month from the day of the transfer into the practice ledger, not from the day the bill was drawn.
- An associate's ledger is only for a personal beneficial interest of the kind the rule names. Do not use it for the associate's fees.
- Do not treat the one-month withdrawal as a substitute for checking the bill and the authority.
Sources
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.