Practice Management

Trust Money

Trust money is defined by section 3.3.2 of the Legal Profession Act 2004 (pdf) (the Act) as:

Money received in the course of or in connection with the provision of legal services by the law practice, for or on behalf of another person and including:

• Money received by the practice on account of legal costs in advance of providing the services;
• Controlled money received by the practice;
• Transit money received by the practice; and
• Money received by the practice that is the subject of a power, exercisable by the practice or an associate of the practice, to deal with money for or on behalf of another person

All practitioners handling trust money are advised to read the relevant legislation carefully:

• Part 3.3 of the Legal Profession Act 2004 (pdf)
• Part 3.3 of the Legal Profession Regulations 2005 (pdf)