Stay Up on the Rules; Trust Account is for Client Funds; How Much is Take Home Anyway?

Ten New Rules
Indiana Supreme Court has amended ten of the Rules lawyers need to know effective Jan. 1, 2013.  You can review them here and realize that service of pleadings on fellow lawyers is now permissible through email, if agreed. PDF format becomes a standard, and several changes to the RPC, including Rule 5.5 on cross-state practice will go into effect.

If you don’t take the occasion to read the various rules that affect your profession, and you life as a lawyer, you have several days in the next two weeks to take that opportunity. Out of the office, often with a book in hand, you might choose to make that book (or tablet) the Rules of Court, and the link above to make sure you are reading the most current rules.

And for a kick, read the Administrative Rules (you may skip the details of Rule 7(d), 8(b), and App to Rule 1 – unless you are a judge) and the Admission and Discipline Rules, in addition to the RPC.  Finish by going back and reading Rule 22 of the A&D Rules. That is the Oath of Attorneys. You took that oath when you were admitted (you might have a copy on your wall someplace), and you would have repeated it if you attended an Indiana Bar Foundation Fellows dinner. At the dinner a Supreme Court Justice leads the crowd in a recitation of the Oath.  A good moment for all in attendance.

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YEAR END TRUST ACCOUNT ALERT

Year end temptations get to some lawyers, the temptation to leave earned funds in the trust account a few weeks longer to move income into next year.  You may want to read the opinion: In the Matter of Jacob Dunnick.

Dunnick was trying to avoid having an IRS lien enforced, and so he started operating his office general funds and paying his office bills out of his trust account. He wrote a check to the Commission for Continuing Legal Education out the funds in his trust account, and the Commission reported him under Rule 8.3. A couple of months later Dunnick bounced a check on the trust account, and under the IOLTA Rule (1.15), that is an automatic report to the DC from the depositor bank.

For playing with his trust funds like this, Dunnick gets a real 60 day suspension (six months, stayed, 60 days served, one year probation). He will need to work with a CPA to quarterly audit and report the trust account to the DC, and he must take the Trust Fund Management class.

Prior lawyer-clients of mine have reported that the Trust Fund Management class is quite worthwhile. If you are uncertain about the means and methods of handling the trust funds or other property that you obtain from your clients, you should keep an eye out for the class. Or you might buy and read the classical treatise on the issue “The ABA Guide to Lawyer Trust Accounts” available through Amazon or the ABA (where you will be surprised to find the price is about 1/2 the Amazon price, and there is $10 off if you belong to the LPM Section).

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Finances causing Troubles?

I ran across an interesting article on Inc.com’s website.  Maybe it fits your needs, maybe it does not, but I know many lawyers who suffer from the problem of inadequate fees, and I have spoken about the issue at the ISBA SSF Conference in years past.

“You Don’t Charge Enough. Here’s How to Fix That.” tackles a problem that affects many lawyers, we let the jokes and the reputation as sharks keep our fees too far below the value that our services provide to our clients. A worthwhile read before you set your office budget for 2013.

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And on that note, I want to wish you the best of the holidays.  As noted Indiana lawyer Derrick Wilson said “Make sure you wish the readers a Merry Christmas, Happy Hanukkah, Kwanzaa, Festivus or holiday of their choice.”  And so I do (once again, following the sage advice of Mr. Wilson…)

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2 thoughts on “Stay Up on the Rules; Trust Account is for Client Funds; How Much is Take Home Anyway?

  1. Pingback: Happy New Year; New Rules; Be Honest; Tell Your Friends | Lawyers with Troubles

  2. Pingback: Fraud is trouble; Theft from Child; Research Issues; Epic Trust Fund Breach | Lawyers with Troubles

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