Lawyers’ trust accounts will be subject to the audit program pursuant to Rule 5 at least once every two years but may be audited more frequently and randomly if necessary.
Procedure For the Disposal of Unclaimed Trust Funds
Pursuant to Section 70.1 of the Law Society Act, 1999, SNL 1999, c. L-9.1, members who have held money in trust on behalf of a person whom the member has been unable to locate for 2 years or more, must pay those monies to the Society.
Individual amounts can be provided separately or as a lump sum, by cheque made payable to the ‘Law Society of Newfoundland and Labrador in Trust’. Members must also provide particulars respecting the monies attributable to each client. The information required includes the name of the client, the name of the lawyer retained, the amount of funds held in trust, the date of the last trust activity and an explanation of the efforts taken to locate the clients to return the funds. To comply with Section 70.1, members only need to send a letter to the Law Society with the relevant information requested for each client, and the cheque(s). For further information, members are encouraged to review the Procedure for the disposal of unclaimed trust funds.
The Law Society is required to hold these funds for 10 years, after which the funds are paid to the Law Foundation. If at anytime during that 10 year period a client comes forward and makes a claim to funds being held by the Law Society, the client is required to complete a Claim to Trust Money form.
Practice Standards, Notices and Advisories
- Cash Transactions – Practice Standard
- Commissions – Practice Standard
- Discount Coupons – Practice Standard
- Disclosure of Conflict – Practice Standard
- Credit Card Transactions – Practice Standard
- Delivery of Bill – Practice Standard
- Deposit of Credit Card Payments – Practice Standard
- Disclosure of Member Fees – Practice Standard
- Practice Advisory – Disclosure of Rewards
- Loan Guarantees – Practice Standard
- Printing Client Trust Listing – Practice Standard
- Judgments and Bankruptcy – Notice of Audits
- Registration Fees – Practice Standard
- Signature Stamps-Electronic Signatures on Trust Cheques – Practice Standard
- Notice to the Profession – Title Insurance Fees
- Transaction Levy Accounting
- Electronic Funds Transfer – Practice Standard
- 2 Cheque Practice Standard – Residential and Commercial Real Estate
- Practice Advisory – Withdrawals and Transfers from Trust Accounts