Trust Accounts and Fee Agreements: Ethical Traps for the Unwary

IOLTA and trust accountings and fee agreements are among the most frequent sources of client disputes, disciplinary action, and malpractice exposure for attorneys. This course examines the ethical and practical mistakes lawyers commonly make when handling client funds and structuring fee arrangements, with particular relevance to estate planning, probate, business, and transactional practices.

The program addresses recurring trust account issues, such as commingling funds, mishandling advances and retainers, flat-fee and evergreen retainer errors, credit card and ACH pitfalls, and recordkeeping failures. It will also explore fee agreement problems, including unclear scope, improper “nonrefundable” language, termination provisions, and conflicts that arise in fiduciary and estate representations.

The course will address the Model Rules of Professional Conduct, including Model Rule 1.4, Communication; Model Rule 1.5, Fees; and Model Rule 1.15, Safekeeping Property. Using real disciplinary cases and ethics guidance, this course provides practical instruction on drafting compliant fee agreements, properly handling client funds, and implementing controls to reduce risk and protect both clients and lawyers.

Learning Objectives

This course will enable participants to do the following:

• Identify common trust account and fee agreement violations that lead to discipline and liability.
• Distinguish between earned and unearned fees and properly handle retainers and advances.
• Draft fee agreements that comply with ethical rules and avoid common traps.
• Implement best practices for trust account management and recordkeeping.

Presented by: Daniel J. Siegel

CLE: 1.0 Ethics credit

Approved States: CA, CO, GA, IL, NJ, NV, NY, OK, PA, TN, UT, VT

(AK, AR, AZ, CT, ND, NH, & TX are eligible to claim credit. MO eligible to claim general credit only.)

We will supply you with the information needed to apply in other states.

Contact shopcle@wealthcounsel.com for CLE assistance.

WealthCounsel members: This CLE eligible program may be complimentary for WealthCounsel members, depending upon their subscription bundle.  Please access and view it here via the member website for optimal experience and inclusion in your CLE Profile Account.