What did Missouri Formal Opinion 118 require for unused trust funds when a former client could not be located?

Plain-English summary

The opinion addressed small unused balances left in trust after a representation, often from unused filing fees or expense deposits, when every reasonable attempt to find the client and refund the balance had failed.

The lawyer's duty to safeguard all client funds continued after the professional relationship ended. Their ultimate disposition was governed by Missouri's Uniform Disposition of Unclaimed Property provisions then in effect.

Under the cited 1988 statutes, unclaimed funds and interest were presumed abandoned after seven years. The lawyer then reported them to the state agency, paid them to the Missouri State Treasurer, and could retain reasonable compliance costs. The state director published notice for two successive weeks.

Currency note

Formal Opinion 118 was issued in 1988 and expressly relied on Missouri Revised Statutes sections 447.500-447.585 as they then governed unclaimed property, including a seven-year period and named agencies. Statutes and procedures may have changed. Treat these directions as historical context and verify current law.

Common questions

Q: Did the safekeeping duty end when representation ended?

A: No. The opinion said it continued while the lawyer held the funds.

Q: What attempts preceded the unclaimed-property process?

A: Every reasonable effort to locate the client and return the funds had to fail.

Q: Did the process include interest?

A: Yes. The opinion included the unclaimed principal and any interest.

Q: Could the lawyer retain any amount?

A: The cited statute allowed reasonable costs of compliance to be retained when the report and payment were made.

Background and rules framework

The opinion grounded the continuing safekeeping duty in professional responsibility and treated the final disposition of missing-client funds as a question of Missouri unclaimed-property law.

Citations and references

Statutes:

• Mo. Rev. Stat. §§ 447.500-447.585
• Mo. Rev. Stat. §§ 447.530, 447.539, 447.541, and 447.543

See also

• Nebraska Ethics Op. 93-3: Unclaimed trust funds
• Louisiana Public Op. 06-LSBA-RPCC-009: Missing-client property
• Oregon Ethics Op. 2005-48: Unclaimed trust funds

Source

• Landing page: Missouri Formal Opinion 118

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

FORMAL OPINION 118

QUESTION: What is the proper disposition of a client’s unused funds remaining in a lawyer’s trust fund after termination of representation when every reasonable effort has been made to locate the client and refund the funds?

ANSWER: While this situation is not uncommon, it is troublesome, particularly in that the amounts sought to be refunded are typically only a few dollars, representing refunds on unused filing fees or what remains unspent of money deposited for future expenses.

The lawyer’s duty to safeguard all clients’ funds in his possession continues after the representation of the client has ended. The lawyer’s duty, after all reasonable effort to find the client and refund the funds are in vain, is a matter of Missouri law, which currently is stated in RSMO 447.500- 447.585, Uniform Disposition of Unclaimed Property. All such unclaimed funds, including any interest, are presumed abandoned property after seven years (447.530) and shall be reported to the director of the Missouri Department of Economic Development under the provisions of 447.539 and the director shall cause notice to be published at least once each week for two successive weeks in a newspaper of general circulation (447.541). The lawyer at the time of filing such report shall pay the funds to the Missouri State Treasurer, retaining the reasonable costs of compliance with Sections 445.500–447.585 (447.543).

Adopted October 21, 1988.