Want to Open a Trust Account?
Effective April 1, 2019, all law firms who wish to operate a trust account must complete two steps before opening a trust account. First, the firm must apply to the Law Society for a practising lawyer to be approved as the firm’s trust account supervisor. Secondly, the approved trust account supervisor must successfully complete the Society’s online Trust Accounting Fundamentals education program and examination.
The firm’s trust account supervisor will be responsible and accountable for the operation of the firm’s trust account(s), for the firm’s record keeping requirements and will be the contact person for communications with the Society regarding the firm’s accounting or record keeping.
For more information, see:
The Law Society of Manitoba Rules,
Part 5 Protection of the Public, Division 4- Financial Accountability Rules 5-41 to 5-56(2)
Trust Accounting Fundamentals
The Trust Accounting Fundamentals education program is for members looking to qualify as a trust account supervisor. It is also great resource for all practising lawyers and support staff.
Members ready to take the related exam can find it on our Education Centre website here: Trust Account Supervisor Applicant Exam. You will need to log in with your Education Centre account username and password in order to enroll. For more information, please visit CPD on Demand FAQ.
Payments to Teranet Manitoba LP (The Property Registry)
The Financial Accountability Rules accommodate electronic transfer of trust funds to Teranet for the purpose of eRegistration, but only in very narrow and specific circumstances.
To better understand the Law Society rules and requirements for firms using eRegistration and electronic funds transfer, you can link to:
Estate Practice
For appropriate billing in estate matters, refer to the Court of King’s Bench Rules.
If you are appointed to act in a representative capacity and are not providing legal services, you are required to notify the Law Society within 30 days of beginning to act on the appointment, you must maintain books and records and you must produce those books and records to a Law Society auditor upon request. Notification may be provided to audit@lawsociety.mb.ca.
A lawyer must not accept payment for services to the personal representative or to the estate except in accordance with King’s Bench Rule 74.14. To assist lawyers to determine whether their fee is fair and reasonable and in accord with the rule, the Law Society has produced a Statement of Principles for Estate Fees.
Forms, Templates & Checklists
Forms
- Trust account supervisor application
- Letter of direction
- Unlocatable client(Section 51 of the Legal Profession Act)
Templates
Pooled trust account
Restricted trust account
Specific trust investment account
Other
Checklists
Reconciliation review checklist
Accounting Record Examples
Red & Red LLP is a new firm. Here you can follow the firm’s early months of trust account activity, including fact scenarios, books of original entry, client trust ledgers and monthly trust reconciliations for:
May, 20XX – First month of trust activity (pooled and specific trust investment accounts)
June, 20XX – Second month of trust account activity (pooled trust account)
