Advance fees paid to attorneys for future legal services must be placed into a trust account until the money is earned or returned to a client, the American Bar Association said Wednesday.
The ABA released a formal opinion providing guidance on the proper handling of advance fees under the Model Rules of Professional Conduct. The opinion clarifies the proper methods for handling fees, including when to treat them as earned.
Advances are fees paid by clients to attorneys for legal services to be done in the future. This differs from a retainer, which is a fee paid by a client ...
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