Safekeeping Funds and Other Property
Safekeeping questions test trust accounts, client and third-person property, disputed claims, accounting, notification, delivery, and separation of funds.
How to study for the MPRE
Treat each item as a professional responsibility priority problem: identify the lawyer's role, client status, duty, exception, consent issue, and best ethical action.
Core concepts
Concept 1
Client and third-person funds must be kept separate from lawyer funds.
Exam cue: If money belongs to a client or third person, think trust account.
Concept 2
Lawyers must promptly notify, deliver, and account for property when appropriate.
Exam cue: If ownership is disputed, hold the disputed portion separate.
Concept 3
Disputed funds should be kept separate until the dispute is resolved.
Exam cue: Do not use client funds for lawyer or firm expenses.
Risk pitfalls and guardrails
Commingling personal and client funds.
Guardrail: Avoid answers that ignore conflicts, over-disclose confidential information, mislead a tribunal or nonclient, commingle funds, or promise guaranteed results.
Disbursing disputed funds to one side too quickly.
Guardrail: Avoid answers that ignore conflicts, over-disclose confidential information, mislead a tribunal or nonclient, commingle funds, or promise guaranteed results.
Failing to account for or notify about received property.
Guardrail: Avoid answers that ignore conflicts, over-disclose confidential information, mislead a tribunal or nonclient, commingle funds, or promise guaranteed results.
Memory anchors
Trust Account
A trust account holds client or third-person funds separate from lawyer funds.
Commingling
Commingling mixes lawyer funds with client or third-person funds improperly.
Prompt Notice
Prompt notice tells interested persons that funds or property were received.
Prompt Delivery
Prompt delivery provides undisputed funds or property to the entitled person.
Accounting
Accounting explains receipt, holding, and disbursement of funds or property.
Disputed Claim
A disputed claim requires holding the disputed portion until resolution.
Unearned Fee
Unearned fees usually remain in trust until earned.
Advanced Costs
Advanced costs should be handled according to safekeeping rules.
Third-Person Property
Third-person property may create duties even without a client relationship.
Separate Ledger
Separate ledgers help track funds for each client or matter.
Checkpoint rule
Do the check-up only after you can summarize each concept in one sentence and identify one dangerous pitfall from memory.
Knowledge Check (after reading)
Short check-up to confirm understanding of this module.
Check-up Questions
A new client pays a lawyer $6,000 in advance for hourly services not yet performed. The fee agreement does not make the payment earned on receipt, and applicable law provides no exception. Where should the lawyer place the money?
A bank requires a $100 minimum balance of the lawyer's own funds to keep a client trust account open without monthly charges. May the lawyer deposit that amount in the trust account?
Answer all questions to submit.
Next step personalized recommendations
Continue learning
Move forward only after this module is stable.
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