A Lawyer keeps a small amount of her own money in the trust account to cover bank charges. If lawyer puts a large amount of money in the client funds account? 

Could there be any harm? 

Might lawyer be attempting to hide funds? Why?

 

Lawyer keeps client funds in a separate account, not labeled as a trust or escrow, but never uses the money. When clients become entitled to the money, it is promptly distributed to them. No harm done. 

 

Is lawyer be trying to create an impression of having assets that are not hers? Why?

 

3. Lawyer receives a check from an insurance company in settlement of a claim. The client has already agreed to the $60,000 settlement, in writing, and has agreed that the attorney is entitled to $23,000 in fees and costs. The attorney knows that the client is in desperate need of money and does not want the client to have to wait for the check to clear. The attorney knows that he has sufficient funds in his business account, so he deposits the check in that account and, before leaving the bank, writes a check for $37,000 to client and seals it in a stamped, addressed envelope, planning to mail it immediately.

 

What type of problem could arise?