Solicitors Accounts II: Operation of Joint Account; Operation of a Client’s Own Account
Description
A detailed examination of how solicitors manage client funds through two distinct mechanisms: Joint Accounts and the Operation of a Client's Own Account. Joint Accounts are typically used in estate administration, involving shared control and responsibility between the solicitor and the client or third party, and though not classified as a traditional "client account," the funds remain client money under SRA Rules. Conversely, the Operation of a Client's Own Account occurs when a solicitor, often holding a power of attorney, manages funds directly in the client’s existing personal account. While most SRA Accounts Rules do not apply to either format, both require the solicitor to obtain bank statements at least every five weeks and maintain a central record of bills. A key difference is that reconciliation is required for the client's own account every five weeks, but not for a joint account, and solicitors must implement risk mitigation, such as recommending joint signatures for joint accounts.
United States
