Where must a lawyer keep client funds and how long must they be preserved after termination?

Where must a lawyer keep client funds and how long must they be preserved after termination?

• A. In a separate account; five years after termination
• B. In the attorney's personal account; indefinitely
• C. In a general business account; two years
• D. In a separate account; three months

Answer: (A)

Client funds must be kept in a separate trust account, not in the attorney’s personal or general business accounts. This separation protects the funds from the attorney’s own finances and provides clear, auditable records of all client money. After the representation ends, the lawyer must preserve the funds and the related records for five years. That combination—separate trust account and five-year retention after termination—is why this option is correct. The other options would involve comingling funds or use shorter or indefinite retention that do not align with the rule.

Client funds must be kept in a separate trust account, not in the attorney’s personal or general business accounts. This separation protects the funds from the attorney’s own finances and provides clear, auditable records of all client money. After the representation ends, the lawyer must preserve the funds and the related records for five years. That combination—separate trust account and five-year retention after termination—is why this option is correct. The other options would involve comingling funds or use shorter or indefinite retention that do not align with the rule.