Question

Trust account violations are the second biggest complaints. The firm can not pay itself from the trust account until: A. The client explicitly requests it.

B. The legal matter is concluded.

C. The trust account reaches a certain balance.

D. The attorney provides a written explanation to the bar association.

Answer 1

A law firm cannot pay itself from a trust account until the legal matter for which the funds are held is concluded, typically following invoiced accounting to the client. Specific rules may vary by jurisdiction.

Step-by-step explanation:

The student's question pertains to trust account management within a law firm. Trust accounts are used to hold money on behalf of a client and there are strict regulations regarding when a law firm can withdraw funds from this type of account.

The question presents multiple-choice options regarding when a firm can rightfully pay itself from the trust account. Based on general ethical standards in the legal profession, a law firm typically cannot pay itself from a trust account until the legal matter for which the funds are held is concluded. The legal fees earned may be withdrawn following an invoiced accounting provided to the client.

Note that this is a general explanation, and specific rules can vary by jurisdiction; always consult the relevant rules of professional conduct for the jurisdiction in question.