Trust Accounting Dos and Dont's Oregon ALA Chapter

8/9/2019 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

"41#E1#E # ,44#8"0#E1

and con(dential

Documents

Trust Accounting Dos and Dont's Oregon ALA Chapter