---
title: "Written direction to pay trust money to a third party"
url: "https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/direction-to-pay-third-party"
type: "precedent"
site: "AI Law Framework"
id: "a41-direction-to-pay-third-party"
area_id: "A41"
kind: "letter"
ai_level: "yellow"
version: 1
task_ids: ["A41-T1-R2", "A41-A20260923-2"]
law_stated_as_at: "2026-10-22"
---

# Written direction to pay trust money to a third party

> Client direction to pay a stated sum of trust money to a named third party, with the cheque or electronic-transfer particulars in rule 43. It is not an authority to take costs.

Canonical page: https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/direction-to-pay-third-party  
Law stated as at: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

- Kind: Letter. A letter or email you adapt and send.
- Practice area: [Trust accounting & handling client money](https://ailawframework.com/precedents/trust-accounting-and-handling-client-money.md)
- Jurisdictions: New South Wales, Western Australia
- AI level: Yellow. You and the tool draft together, with you directing. You check every statement you rely on.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 6 authorities it cites, for New South Wales and Western Australia.

## When to use it

Use when the person for whom trust money is held directs a payment to someone else, such as a settlement payee or an expert. Use the costs authority, not this direction, to withdraw money for the practice's legal costs.

## Used for these tasks

- [Draft a trust receipt or disbursement instruction from the authority](https://ailawframework.com/obligations/trust-accounting-and-handling-client-money/draft-a-trust-receipt-or-disbursement-instruction-from-the-authority.md)
- [Check a trust-to-office transfer against the bill and the authority](https://ailawframework.com/obligations/trust-accounting-and-handling-client-money/check-a-trust-to-office-transfer-against-the-bill-and-the-authority.md)

## How AI may be used

AI may prepare the direction from a signed instruction and the ledger balance. A principal checks the payee, the balance and who will authorise the payment.

**AI may:**

- Insert the payee, amount and matter reference from the client's signed instruction
- Compare the amount with the balance of that trust ledger and flag if the payment would exceed it

**AI must not:**

- Must not treat an email that has not been confirmed as the client's direction
- Must not use this form to pay the practice's own costs or to move money to the office account
- Must not choose the authorised signatory

**The lawyer checks:**

- The direction is given by the person on whose behalf the money is held, and the ledger will not go into debit
- Payee name, BSB and account number match a confirmation that is not an unverified email
- An authorised principal effects the transfer, or if no principal is available a person rule 43(2)(b) permits, and that choice is recorded

## Authorities

- [Legal Profession Uniform Law (NSW) s 138(1)(b) (disburse trust money only in accordance with a direction given by the person)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s138.html)
- [Legal Profession Uniform Law (NSW) s 144 (withdrawal only by cheque or electronic funds transfer)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s144.html)
- [Legal Profession Uniform Law (NSW) s 148 (do not cause a deficiency in a trust account or trust ledger)](https://classic.austlii.edu.au/au/legis/nsw/consol_act/lpul333/s148.html)
- [Legal Profession Uniform General Rules 2015 (NSW) r 43 (cheque form, who may authorise, and the required particulars)](https://classic.austlii.edu.au/au/legis/nsw/consol_reg/lpugr2015372/s43.html)
- [Legal Profession Uniform General Rules 2015 (NSW) r 42 (the separate procedure for withdrawing trust money for legal costs)](https://classic.austlii.edu.au/au/legis/nsw/consol_reg/lpugr2015372/s42.html)
- [Legal Practice Board of Western Australia, Trust account management (withdrawals and passwords)](https://www.lpbwa.org.au/trust-account-management)

## 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/direction-to-pay-third-party 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.*