Attorney Trust Account Rules

The Attorney Trust Account rules ensure that the money the attorney receives from their clients is safe and accounted for. Section 78(2)(a) of the Act lays out guidelines for the Attorneys Trust Account. Strict accounting practices must be adhered to. Independent annual audits and reports must be submitted to the Legal Practice Council. All attorneys need to have a Fidelity Fund Certificate. This certificate is issued annually and relies on the audit of the attorney firm.

What happens to your money when you deposit money into your attorney’s trust?

There are several rules that look after your money that you deposit into an Attorney’s Trust Account.

Your attorney must have detailed records to show how and where the funds were invested. You can ask your attorney to provide you with a statement of your account and they must provide you with this statement.

If you suspect your funds have been misused or stolen you have the right to report this attorney to the relevant Legal Practice Council.

Can I earn interest on the money I paid my attorney?

Yes, however it is important to ask your attorney to invest your funds in an interest-bearing account with a financial institution for your benefit.

This essentially means that a client may request any attorney to invest her funds in an account opened and administered in terms of section 78(2A) for her benefit

Does my attorney earn interest on my money?

No, the attorney doesn’t earn interest on money paid into the Trust account. Section 78(2)(a) of the Act provides that an attorney may also place funds received from a client in any interest-bearing account with a financial institution.

The interest accrued on an account opened in terms of this section must be paid over to the Attorneys Fidelity Fund through the relevant Legal Practice Council.