Crucial Exams

Multistate Professional Responsibility Exam Practice Question

Saru, an attorney, received advance payment from a new client for future representation. Instead of placing those funds in a designated account for client money, Saru deposited them in the office account that covers daily business costs. The client does not receive any legal services for these funds while they remain in the account with business finances. Which approach aligns with professional obligations?

  • Deposit the funds in the same account used for office expenses if the lawyer notifies the client and keeps accurate records

  • Keep the unearned retainer in a trust account until it is earned or returned

  • Combine the retainer funds with the lawyer’s personal finances as long as the lawyer provides a breakdown of each deposit and disbursement

  • Keep the funds in the business account

Multistate Professional Responsibility Exam
Safekeeping funds and other property
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