trust accounting dos and dont's oregon ala chapter
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Most attorneys practice lawbecause it gives them a grandand glorious feeling.
ou give them a grand - and theyel glorious.
Milton Berle
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DO’S AND DON’TS
TRUST ACCOUNTING
BEVERLY MICHAELISATTORNEY |PRACTICE MANAGEMENT ADVISOR
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TOPICS
It’s Nice to be Paid but…
Credit Cards Revisited
Unclaimed Funds
Northern FriendsProtecting Client and FirmMoney
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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%ositedin:
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%inion044"#"5
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PRACTICE
$hird %arty loans .unds to client
Client brings .unds to la+yer
Avoid the third party
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PREPAID OR EARNED UPONRECEIPT FEES
! Must be in +riting
0! Use the magic +ords
1! 2ub6ect to re.und
O2B Formal 3thics O%inion 044"#"
Oregon RPCs !"7 !"7 and ,!8
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How Much Do I Owe You?
"New" Guidelines For Fixed And So-called
Nonrefundable Fees
htt%9::+++!osbar!org:%ublications:bulletin:oct:barcounsel!html
Use stage o. com%letion
I. hal. the +or) is done7re.und hal. the .ee
;ourly rate com%utationsnot allo+ed
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Designation of a prepaid xed feeas nonrefundable may bemisleading if not falsein violation of !regon "#$ %.&'a(')(
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PRACTICE
Pro o! Pre"#$% F$&e% Fee
Clients li)e
certainty3asy 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%ing3=cessive .ee<
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PRACTICE
*he +est of +oth ,orlds
ixed fee goes into trust
Agreement species 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 AForms A eCourt
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REIMBURSING ADVANCED COSTS
@ocument (led
Filing .eecharged to (rm
CC
Costadvance
d
Postedto client
account
Billed toclient
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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
client1! '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. uncashedchec)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 $echnology2urvey Re%ort # 048
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PROTECT AGAINSTEMBE))LEMENT
!&imit o%%ortunity
0!2e%arate accounting duties
1!Re*uire documentation
8!Cancel invoices
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PROTECT AGAINSTEMBE))LEMENT
@on’t use signature stam%s
3liminate cash transactions
?ideo surveillance<
Bond G Insure
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ASSESS DATA BREACH RIS(
! Net+or) com%romised<
0! @evices lost or stolen<
1! Remote +i%ing enabled<
8! 3ncry%tion used<
"! 'nti#mal+are current<
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ASSESS DATA BREACH RIS(
E! 2ecure (re+all<
5! 2ta> educated about scams<
,! Unsecured i#Fi use %rohibited<! Covered< HP&F 3=cess or Other
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USE FRAUD PROTECTIONSERVICES
Positive %ay
Reverse %ositive %ay
'C; Bloc)s or FiltersPer.ect Receivables
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PRACTICE
+++!osb%l.!org A C&3 A Forms A Past
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Co't#*t U
Beverly MichaelisbeverlymJosb%l.!org2heila Blac).ord sheilabJosb%l.!org
enni.er Meisberger
6enni.ermJosb%l.!org;ong @ao hongdJosb%l.!org
PLF Pr#*t$*e M#'#+ee't A%-$or
+++!osb%l.!org
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and con(dential
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