How should a lawyer manage client money received in advance?

The management of client funds by lawyers is governed by ethical rules that emphasize the importance of safeguarding client property. When a lawyer receives money from a client in advance—often as a retainer—it is necessary to treat these funds appropriately to ensure compliance with professional responsibilities.

Withdrawing funds for personal expenditures until needed is impermissible because it can lead to commingling of client funds with personal funds, which violates professional conduct rules. Similarly, depositing the funds into the operating account is inappropriate as this account typically holds funds for the lawyer's business expenses and can also lead to commingling and mismanagement of trust funds.

Holding the funds without access until the representation ends is also not practical or permissible. Clients should have access to their funds, and the lawyer must provide services for which the retainer was intended.

The correct approach is to only withdraw from the client’s funds once the work has been completed or the incurred costs have been distinctly recognized. This method ensures that the lawyer adheres to ethical requirements by maintaining the integrity of client funds and fulfilling their duty to act in the client's best interest. This protocol helps prevent conflicts of interest and misuse of client money, thereby upholding professional standards in legal practice.