--- title: "Client authority to withdraw trust money for legal costs, with notice of withdrawal and pre-transfer checklist (Uniform Law)" url: "https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/client-authority-pay-costs-from-trust" type: "precedent" site: "AI Law Framework" id: "a41-client-authority-pay-costs-from-trust" area_id: "A41" kind: "form" ai_level: "red" version: 1 law_stated_as_at: "2026-10-17" --- # 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… Canonical page: https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/client-authority-pay-costs-from-trust Law stated as at: 2026-10-17 Site index for agents: https://ailawframework.com/llms.txt 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. ## Key facts - Kind: Form. A form to complete, or a guide to completing an official one. - Practice area: [Trust accounting & handling client money](https://ailawframework.com/precedents/trust-accounting-and-handling-client-money.md) - Jurisdictions: New South Wales, Victoria, Western Australia - AI level: Red. Keep AI out of the decisive steps. A lawyer does the work. - Law stated as at: 2026-10-17 - Status: Maintained. Checked on 2026-10-17 against the 11 authorities it cites, for New South Wales, Victoria and Western Australia. ## When to use it Use in NSW, Victoria and Western Australia when a client agrees that the practice may pay its bills from money held in trust. Not for money held for a specific purpose (such as settlement funds) unless the authority expressly covers it. In other states, use the local equivalent rules. ## How AI may be used Lawyer-led. AI may prepare a draft notice of withdrawal from the bill and list mismatches between the bill, the authority and the ledger. A principal checks every item and authorises the transfer; AI never approves or releases trust money. **AI may:** - Draft the notice of withdrawal in Part B from the bill and the matter details, for a person to check. - Compare the bill, the authority and the trust ledger and list amounts or matters that do not match, or that would overdraw the ledger. **AI must not:** - Must not approve, schedule or release any trust payment, or have access to banking functions. - Must not decide that money held for a specific purpose may be used for costs. - Must not change payee details or ledger entries. **The lawyer checks:** - The authority covers this matter, this money and this amount, and is kept as a permanent record. - A bill or request for payment was given and the notice of withdrawal sent before the transfer. - The transfer is authorised by an authorised principal or permitted associate under r 43(2). ## Authorities - [Legal Profession Uniform Law s 138 (holding and disbursing trust money only in accordance with a direction)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a) - [Legal Profession Uniform Law ss 141 and 142 (trust money subject to specific powers or a written direction)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a) - [Legal Profession Uniform Law s 144 (withdrawal of trust money, including for legal costs)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a) - [Legal Profession Uniform General Rules 2015 r 42 (withdrawal of trust money for payment of legal costs)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0246) - [Legal Profession Uniform General Rules 2015 r 43 (method of payment; who may authorise)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0246) - [Legal Profession Uniform General Rules 2015 r 49 (trust ledger account in the name of the law practice)](https://legislation.nsw.gov.au/view/html/inforce/current/sl-2015-0246) - [Legal Profession Uniform Law s 187 (request for itemised bills)](https://legislation.nsw.gov.au/view/html/inforce/current/act-2014-16a) - [Queensland: Legal Profession Regulation 2017 (trust account rules)](https://www.legislation.qld.gov.au/view/html/inforce/current/sl-2017-0174) - [NZ: Lawyers and Conveyancers Act (Trust Account) Regulations 2008](https://www.legislation.govt.nz/secondary-legislation/pco-drafted/2008/183/en/latest/) - [UK: SRA Accounts Rules 2019](https://www.sra.org.uk/solicitors/standards-regulations/accounts-rules/) - [US: ABA Model Rules of Professional Conduct r 1.15 (safekeeping property)](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_15_safekeeping_property/) ## Official form [Official form](https://www.lawsociety.com.au/practising-law-nsw/trust-money-and-fidelity-fund/operating-trust-accounts) ## Full text and drafting notes The full text and the drafting notes are not part of this public page. Signed-in firm accounts can read them at https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/client-authority-pay-costs-from-trust and through the signed-in MCP connector https://ailawframework.com/mcp/firm. *Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*