Precedents: Trust accounting & handling client money
5 starting-point precedents for this area. Each one names the law it rests on and says how far AI may help.
- Precedents in this area
- 5
- Full text
- For signed-in accounts
- Newest law stated as at
- 17 October 2026
- Guidance for this area
- Tasks and AI use in Trust accounting & handling client money
| Precedent | Kind | Where it applies | AI use | Law stated as at |
|---|---|---|---|---|
| Client authority to withdraw trust money for legal costs, with notice of withdrawal and pre-transfer checklist (Uniform Law)A client authority under r 42(4) of the Legal Profession Uniform General Rules allowing a law practice to pay its legal costs from trust money, a notice of withdrawal to send before each transfer, and a principal's pre-transfer checklist. | Form | New South Wales, Victoria, Western Australia | Red | 17 October 2026 |
| Payment-redirection and deepfake call-back verification protocol for trust disbursementsA firm protocol that stops trust money being paid to fraudsters: bank details collected securely, changes never accepted by email, phone or video alone, independent call-back to a known number, two-person checks before each disbursement, deepfake red flags and what to do if money goes astray. | Policy | Australia | Red | 17 October 2026 |
| Review checklist for AI-assisted monthly trust reconciliation (Uniform General Rules r 48)A checklist for the principal who reviews a monthly trust reconciliation prepared with AI matching: inputs and access, the statements r 48 requires, how to test the AI's matches, exceptions to investigate, master-data changes, sign-off within 15 working days, and escalation of irregularities. | Checklist | New South Wales, Victoria, Western Australia | Red | 17 October 2026 |
| Client notice: our bank details will never change by email (payment fraud and deepfake warning)A short, plain-English notice for clients that the firm's bank details will never change by email, how to verify before paying, how the firm will verify the client's details before paying them, a warning about AI-cloned voices and fake video calls, and what to do if something goes wrong. | Notice | Australia | Yellow | 17 October 2026 |
| Controls standard: AI tools and trust records (read-only access, no payment functions, audit trail)A firm standard for any AI tool, agent or AI feature that touches trust records: permitted and prohibited uses, read-only access with no payment or posting rights, logging and back-ups, human review, vendor checks, external examiner access and irregularity reporting. | Policy | New South Wales, Victoria, Western Australia | Red | 17 October 2026 |
AI use levels: Green means AI can do most of the drafting and a lawyer reviews it. Yellow means AI helps in set ways and a lawyer checks specific points. Red means a lawyer does the work and AI stays out of the decisive steps.