trust accounting dos and dont's oregon ala chapter

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    Most attorneys practice law because it gives them a grand and glorious feeling.

    ou give them a grand - and they el glorious.

    Milton Berle

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    DO’S AND DON’TS

    TRUST ACCOUNTING

    BEVERLY MICHAELIS ATTORNEY |PRACTICE MANAGEMENT ADVISOR

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    TOPICS

     It’s Nice to be Paid but…

    Credit Cards Revisited

    Unclaimed Funds

    Northern Friends Protecting Client and Firm Money

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    IT’S NICE TO BE PAID, BUT

    WATCH OUT FOR THESETRAPS

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    WHEN A CLIENT OVERPAYS…

    Oregon RPC !"#

     $he %ayment should be de%osited in:

    o  $he IO&$' account

    o  $he (rm account

    o  $his is a tric) *uestion

    Vote

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    PRACTICE

    Update rm fee agreements

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    THIRD PARTY PAYMENT

    !Follo+ Oregon RPC !,-./

    0!Redact billing statements

    1!2%eci.y +ho receives re.und

    O2B Formal 3thics O%inion 044"#"5

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    PRACTICE

     $hird %arty loans .unds to client

     Client brings .unds to la+yer

     Avoid the third party 

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    PREPAID OR EARNED UPON RECEIPT FEES

    ! Must be in +riting

    0! Use the magic +ords

    1! 2ub6ect to re.und

    O2B Formal 3thics O%inion 044"#"

    Oregon RPCs !"7 !"7 and ,!8

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    How Much Do I Owe You?

    "New" Guidelines For Fixed And So-called

    Nonrefundable Fees

    htt%9::+++!osbar!org:%ublications:bulletin:oct:barcounsel!html

    Use stage o. com%letion

    I. hal. the +or) is done7 re.und hal. the .ee

    ;ourly rate com%utations not allo+ed

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    Designation of a prepaid xed fee as nonrefundable may be misleading if not false in violation of !regon "#$ %.&'a( ')(

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    PRACTICE

    Pro o! Pre"#$% F$&e% Fee

    Clients li)e

    certainty 3asy to budget

     Immediate income

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    PRACTICE

    Co' o! Pre"#$% F$&e% Fee

    Bad bargain<

    Calculating re.unds

    Money out#o.#%oc)et

    Re*uires time)ee%ing 3=cessive .ee<

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    PRACTICE

    *he +est of +oth ,orlds

     ixed fee goes into trust 

     Agreement species when earned

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    REVISITED

    CREDIT CARDS

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    MERCHANT FEES

    ! 3=%ress agreement to %ay<

    0! $I&' disclosures made<

    1! Cash discount o>ered<

    O2B Formal 3thics O%inion 044"#50

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    ECOURT AND CREDIT CARDS

    ?isa7 MasterCard7 or @iscover

     IO&$'#lin)ed debit cards %ermissible

    Manage ris)s

    No 'C; .or no+…

    e$ourt iling ees and /!0*A 1 +++!osb%l.!org A Practice Management A Forms A eCourt

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    REIMBURSING ADVANCED COSTS

    @ocume nt (led

    Filing .ee charged to (rm

    CC

    Cost advance

    d

    Posted to client

    account

    Billed to client

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    REMITTING AND AVOIDING

    UNCLAIMED FUNDS

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    UNCLAIMED FUNDS

    ! 'bandoned a.ter t+o years

    0! 3=ercise due diligence to (nd

    client 1! 'ssess in une

    8! Remit in October

    OR2 ,!110 # O2B Formal 3thics O%inion 044"#8, htt%s9::+++!osbar!org:resources:abandoned.unds!html

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    UNCLAIMED FUNDS

    "! Funds D co%y o. .orms to O2B

    E! Original .orms to @2&

    5! Monitor status o. uncashed chec)s

    ,! Return %roceeds to client<

    OR2 ,!110 # O2B Formal 3thics O%inion 044"#8, htt%s9::+++!osbar!org:resources:abandoned.unds!html

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    THE DILEMMA OF THE SMALL CHEC( 

    htt%9::+++!myban)trac)er!com:ne+s:sto%#%ayment#.ee#com%arison#to%#4#us#ban)s

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    DIFFERENT STATES |DIFFERENT RULES

    NORTHERN FRIENDS

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    WASHINGTON RPCS

    Random audits

    Non#la+yers cannot sign

    5 year record retention

     $+o merchant accounts

    Flat .ee disclaimer di>erent

     +++!osb%l.!org A Practice Management A Forms A $rust 'ccounting

    A$rust 'ccounting Rules .or ashington Practitioners

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    PROTECTING MONEY 

    EMBE))LEMENT | FRAUD |SCAMS

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    'B' &egal $echnology 2urvey Re%ort # 048

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    PROTECT AGAINST EMBE))LEMENT

    !&imit o%%ortunity

    0!2e%arate accounting duties

    1!Re*uire documentation

    8!Cancel invoices

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    PROTECT AGAINST EMBE))LEMENT

    @on’t use signature stam%s

    3liminate cash transactions

    ?ideo surveillance<

    Bond G Insure

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    ASSESS DATA BREACH RIS( 

    ! Net+or) com%romised<

    0! @evices lost or stolen<

    1! Remote +i%ing enabled<

    8! 3ncry%tion used<

    "! 'nti#mal+are current<

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    ASSESS DATA BREACH RIS( 

    E! 2ecure (re+all<

    5! 2ta> educated about scams<

    ,! Unsecured i#Fi use %rohibited< ! Covered< HP&F 3=cess or Other

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    USE FRAUD PROTECTION SERVICES

    Positive %ay

    Reverse %ositive %ay

    'C; Bloc)s or Filters Per.ect Receivables

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    PRACTICE

     +++!osb%l.!org A C&3 A Forms A Past

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    Co't#*t U

    Beverly Michaelis beverlymJosb%l.!org 2heila Blac).ord sheilabJosb%l.!org

     enni.er Meisberger

     6enni.ermJosb%l.!org;ong @ao hongdJosb%l.!org

    PLF Pr#*t$*e M#'#+ee't A%-$or

    +++!osb%l.!org

    "41#E1#E # ,44#8"0#E1

    and con(dential