---
title: "File note when trust funds are disputed (United States)"
url: "https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/us-disputed-trust-funds-file-note"
type: "precedent"
site: "AI Law Framework"
id: "a41-us-disputed-trust-funds-file-note"
area_id: "A41"
kind: "memo"
ai_level: "red"
version: 1
task_ids: ["A41-A20260923-2", "A41-T1-R1"]
law_stated_as_at: "2026-10-22"
---

# File note when trust funds are disputed (United States)

> An internal note recording a dispute over funds in a trust account, the amount that is disputed, and the amount that is not, so the disputed part stays in trust.

Canonical page: https://ailawframework.com/precedents/trust-accounting-and-handling-client-money/us-disputed-trust-funds-file-note  
Law stated as at: 2026-10-22

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

## Key facts

- Kind: Memo. An internal or advice memo.
- Practice area: [Trust accounting & handling client money](https://ailawframework.com/precedents/trust-accounting-and-handling-client-money.md)
- Jurisdictions: United States
- AI level: Red. You write the text. The tool writes nothing into the document. Where permitted, it may check, clarify or collect data, and anything it checks or collects is verified.
- Law stated as at: 2026-10-22
- Status: Maintained. Checked on 2026-10-22 against the 2 authorities it cites, for United States.

## When to use it

Use as soon as the firm knows that two or more persons, one of whom may be the lawyer, claim interests in funds the firm holds. Do not use it as a letter taking sides.

## Used for these tasks

- [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)
- [Reconcile the trust ledger to the bank and the matter files](https://ailawframework.com/obligations/trust-accounting-and-handling-client-money/reconcile-the-trust-ledger-to-the-bank-and-the-matter-files.md)

## How AI may be used

The lawyer writes who claims what. A tool may add the ledger balance next to the figures the lawyer has already written. It does not decide the dispute or write to either claimant.

**AI may:**

- Place the ledger balance beside the disputed and undisputed amounts the lawyer has written
- Flag a note in which the two amounts do not add up to the balance

**AI must not:**

- Must not decide whose claim is stronger
- Must not draft a letter that pays either claimant, or that pressures the client to accept the firm's fee
- Must not describe the dispute to the other claimant using the client's confidential instructions

**The lawyer checks:**

- The disputed amount stays in the trust account until the dispute is resolved
- The undisputed amount is identified and, if it can be paid, is paid promptly
- The note does not use the funds to force the client to accept the firm's view of the fee

## Authorities

- [ABA Model Rules of Professional Conduct, Rule 1.15 (Safekeeping Property)](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_15_safekeeping_property/)
- [ABA Model Rules of Professional Conduct, Rule 1.15, Comments 1 to 3](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_15_safekeeping_property/comment_on_rule_1_15/)

## 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/us-disputed-trust-funds-file-note 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.*