The American Bar Association House of Delegates has adopted new model rules for client trust accounts. The new rules reflect changes in banking laws, technology and legal practice.
The ABA Model Rules for Client Trust Accounts Records will be sent to state courts for potential adoption for compliance with Model Rule of Professional Conduct 1.15. Under 1.15, lawyers must maintain complete records of client trust accounts and must render a full accounting of distribution and receipt of trust property. Every American jurisdiction has has adopted the rules within 1.15 and more than half of the country has added additional rules detailing the trust records that attorneys must retain.
The reason for the update, according to the ABA Standing Committee on Client Protection: due to changes in banking and business practices, many lawyers were "inadvertently running afoul of their jurisdiction's rules of professional conduct."
Some of the changes include:
For more details of the new rules for client trust accounts, check out the full recommendation in the related resources.