How is an advance on fees handled under the new rule?
• When a client advances funds for legal services, those funds must be deposited into a client trust account and should be held in trust until earned by the lawyer through the rendering of services. • Fees must be disbursed from the trust account when earned. Prior to disbursing earned fees, the rule requires a lawyer to deliver a written notice to the client at least five (5) business days before the date on which the withdrawal or disbursement from the trust account will occur. This notice must include the following: • an itemized bill or other accounting of services rendered; • the amount owed; • the anticipated date of withdrawal; and • a statement of the balance remaining in the account after withdrawal.
