When can trust money be withdrawn for the payment of legal costs?
There are two options for doing this. The first is that a law practice may withdraw trust money held in the general trust account or controlled money account for the payment of legal costs owing to the law practice, if the money, according to s58(3) Legal Profession Regulation 2007, are: • withdrawn in accordance with a costs agreement that complies with the legislation and that authorises the withdrawal, or • withdrawn in accordance with instructions that have been received by the law practice and that authorise the withdrawal. If written, they must be retained as a permanent record. If not written, they must be put in writing within five days after effecting the withdrawal and retained as a permanent record, or • is owed to the law practice by way of reimbursement of money already paid by the law practice on behalf of the person, and if before effecting the withdrawal the law practice gives or sends to the person a request for payment, referring to the proposed withdrawal or a writte
