Multistate Professional Responsibility Exam Practice Question
A lawyer is hired to collect and distribute funds on behalf of a non-profit organization. To comply with professional responsibility standards, how should the lawyer manage the organization's funds?
Invest the funds to increase the organization's assets before distribution.
Allow employees of the law firm to handle the funds with appropriate oversight.
Maintain a separate trust account for client funds.
Deposit the funds into the lawyer's personal bank account until distribution.
The lawyer should maintain a separate trust account for client funds to ensure proper safekeeping and prevent commingling. Depositing funds into a personal account, allowing others to handle funds even with oversight, or investing client funds without authorization can lead to ethical violations.
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