Your law firm has received the following payments from clients and others. The firm wants your advice as to which of these payments is trust money and if so, what type of trust money. Please provide the reference to the section of the Legal Profession Act 2008 or Legal Profession Regulations 2009 that supports your answer.
a.A cash amount of $2,000 paid by a client as payment in advance of the firm’s fees for acting for him in a family law dispute.
b.A bank cheque payable to the firm for $499,999, which a client has provided to enable the firm to settle a house purchase for the client in 2 weeks’ time and which the client has instructed should be placed in an interest bearing account until it is required for settlement.
c.A bank cheque payable to Access Money Ltd for $34,000, which the client has provided to you to forward directly to Access Money Ltd under the terms of a settlement agreement between the client and Access Money Ltd.
d.A personal cheque from a client for $12,000 in payment by the client of a bill for professional costs that the firm rendered and sent to the client last month.
e.A cash amount of $6,000 from a client’s husband in part payment to your client of a family law property settlement between her and her husband.
f.A cheque from FBH Insurance for $3,400 payable to your trust account in settlement of a claim that one of your clients made against that insurer.