Trust Accounting Calendar of Key Dates
January 29:
- Complete trust account reconciliations
- Calculate Designated deposit (for Solicitors’ Trust)
- Change passwords*
- Law Practice Report to be forwarded to BDO
- Forward unclaimed money register to Solicitors’ Trust
February 19:
- Complete trust account reconciliations
- Update Register of Powers and Estates
March 19:
- Complete trust account reconciliations
March 31:
- Review Trust Ledger and investment register for older balances and unclaimed monies*
April 21:
- Complete trust account reconciliations
- Calculate Designated deposit (for Solicitors’ Trust)
- Change passwords*
May 21:
- Complete trust account reconciliations
- Update Register of Powers and Estates
June 21:
- Complete trust account reconciliations
June 30:
- Forward statements to clients after June 30 as required by Reg 48(7)
July 21:
- Complete trust account reconciliations
- Calculate Designated deposit (for Solicitors’ Trust)
- Change passwords*
July 30:
- Confirm authorised trust account signatories to Society (Reg 40(3)(b))
August 20:
- Complete trust account reconciliations
- Update Register of Powers and Estates
September 21:
- Complete trust account reconciliations
September 30:
- Review trust ledger and investment register for older balances and unclaimed monies*
October 21:
- Complete trust account reconciliations
- Calculate Designated deposit (for Solicitors’ Trust)
- Change passwords*
November 21:
- Complete trust account reconciliations
- Update Register of Powers and Estates
December 21:
- Complete trust account reconciliations
- Prepare to send Unclaimed Money Register to Solicitors’ Trust before 29 January 2021
- Commence completion of Law Practice Report (Firm Report) to be forwarded to your trust account examiner by 29 January 2021
Notes **
Trust Reconciliations.
- Regulation 38 of the Legal Professions Regulations 2018 applies. Reconciliations to be completed within 15 working days of the end of each month.
Designated deposit (for Solicitors’ Trust)
- S. 352 of the Legal Profession Act 2007 applies. Rebalance deposit to 2/3rds of prescribed deposit (lowest daily balance plus funds already held in designated trust deposit account on last day of quarter) within 21 days of end of the quarter. See also Trust Form 10 with notes.
Stale Cheques
- Cheques are deemed “stale” after 15 months. Good practice is to follow up by letter or phone call any cheque not presented after 3 months.
Old Balances
- Follow up six monthly, suggest March and September.
Unclaimed Money
- S. 257, 258 and 259 of the Legal Profession Act 2007. Funds become unclaimed money two years from date entitlement accrued.
Computer Backup
- Offsite backup at least end of month (best practice – weekly) and retained until after inspection. It is recommended that you have 2 disks or hard drives and alternate their use for backups.
Passwords
- Change passwords regularly – suggest quarterly when reconciling deposit.
* Recommended
** Accurate at time of printing