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| Summer 2009 | Summer 2008 | Summer 2006 | Summer 2005 | Fall/Winter 2004 ETHICS TIPS - SUMMER 2006: Caution about file retention: A New Hampshire Bar Assn. Ethics Opinion (no. 2005-06/3, issued January, 2006) advises lawyers that when a client asks for their file, you must give them both the paper and the electronic documents – including emails. And remember that the client file is client property, so you cannot charge the client for the cost of downloading everything to disks….Tip: Have a clause in the fee agreement about file retention that explains that the client will receive copies of everything during the course of the representation and is responsible for maintaining their own file. Malpractice Coverage Disclosure is Coming: Starting in January, 2007 all Arizona lawyers will be required to disclose on their membership renewal form whether or not they have professional liability insurance. That information will be available to anyone who calls the State Bar to request information on coverage. Lawyers are not, however, required to have malpractice insurance in Arizona – you just need to inform the State Bar about whether or not you have coverage.
Banking Regulations Have Changed: Check Your Trust Account! The recent federal “Check 21” law now permits financial institutions to destroy checks upon receipt and just keep a picture of the cashed check – called a “substitute check.” However, financial institutions are only required to provide customers with copies of those substitute checks upon request. Request! Make sure that you are receiving copies of the cancelled substitute checks for your records.
Other Trust Account Tips: A lawyer should sign off on the monthly three-way reconciliation – and understand what is required by a three-way reconciliation. Your accountant must reconcile the monthly bank statement for the trust account against the trust account ledger and against a total of the amounts listed for each individual client ledger. This is required by Supreme Court Rule 43. Tip: The trust account monthly bank statement should be received by one of the signing partners unopened each month – have the partner initial the statement and then it can be given to the accounting department for processing.
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