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Payments on account of costs are generally client money and must be held in a client account. A payment from a client for a fixed agreed fee after you have delivered a bill is your firms money and should be paid into an office account.
What does client money include? Client money is money of any currency that is received and held as cash, cheque, draft or electronic transfer by a firm when they are providing legal services.
This account enables you to hold your clients individual funds in separate accounts. Its suitable for professional practices or other businesses that hold clients money, such as solicitors, accountants, insurance brokers and estate and managing agents.
Client Funds means money that is paid or/ deposited into the Client Account and held for the Client in segregated client accounts or in segregated accounts with another authorized firm which may be our affiliate.
If there is a large sum of money involved or held for a long time, an attorney can hold the clients funds in an individual account, known as a Client Trust Account (CTA), and the interest earned will go to the client.
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