May a nonlawyer sign or authorize electronic transfers from a Missouri lawyer's trust account?

Plain-English summary

Rule 4-1.15(a)(3) permits an authorized trust-account signatory or person authorizing electronic transfers to be either a Missouri-admitted lawyer or a person under that lawyer's direct supervision.

When a nonlawyer receives access, Comment [2] says it should be limited and closely monitored. The Missouri lawyer retains a nondelegable duty to protect and preserve the account's client funds and may be disciplined for failing to supervise a subordinate who misappropriates them.

The opinion requires appropriate trust-account policies and proper training and supervision of nonlawyers and subordinate lawyers. Those measures must reasonably ensure that the account is handled compatibly with the lawyer's duties under Rules 4-5.1 and 4-5.3.

In practice

Under this opinion, granting a nonlawyer transaction authority does not transfer responsibility for the trust account. Permission depends on direct supervision, limited access, close monitoring, sound account policies, and training.

Common questions

Q: May a nonlawyer be an authorized trust-account signatory?

A: Yes, if the person is under the direct supervision of a Missouri-admitted lawyer.

Q: May that person authorize electronic transfers?

A: Yes, under the same direct-supervision requirement.

Q: How much access may the lawyer provide?

A: Comment [2] says nonlawyer access should be limited and closely monitored.

Q: Can the lawyer delegate responsibility for protecting the funds?

A: No. The opinion describes that duty as nondelegable and states that supervision failures can result in discipline when subordinates misappropriate client funds.

Q: What internal measures does the opinion identify?

A: Proper trust-account policies, training, and supervision of nonlawyers and subordinate lawyers.

Background and rules framework

Rule 4-1.15(a)(3) governs account signatories and electronic-transfer authority. Rules 4-5.1 and 4-5.3 govern supervision of subordinate lawyers and nonlawyers. The opinion cites In re Farris concerning the lawyer's nondelegable duty and supervision responsibility.

Citations and references

Rules of Professional Conduct:

• Missouri Rules 4-1.15(a)(3), 4-5.1, and 4-5.3
• Missouri Rule 4-1.15 Comment [2]

Cases:

• In re Farris, 472 S.W.3d 549, 561 (Mo. banc 2015), trust-account supervision and nondelegable responsibility

See also

• Minnesota LPRB Op. 12: Trust-Account Signatories
• Washington Advisory Op. 2151: Limited-Practice Officers as Signatories
• Missouri Formal Op. 118: Unclaimed Client Trust Funds

Source

• Landing page: Missouri Informal Opinion 2020-19

Original opinion text

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

QUESTION: May a nonlawyer be a signatory on Attorney’s trust account or authorize electronic transfers from the trust account?

ANSWER: Only a lawyer admitted to practice in Missouri or a person under the lawyer’s direct supervision is permitted to be an authorized signatory or to authorize electronic transfers from the trust account. Rule 4–1.15(a)(3). Comment [2] provides guidance that if nonlawyer access to the trust account is granted, it should be “limited and closely monitored by the lawyer.” Comment [2] provides additional guidance that a Missouri lawyer has a “non-delegable duty to protect and preserve the funds in a client trust account and can be disciplined for failure to supervise subordinates who misappropriate client funds. See Rules 4–5.1 and 4–5.3.” See also In re Farris, 472 S.W.3d 549, 561 (Mo. banc 2015). Attorney should establish proper trust account policies and properly train and supervise nonlawyers and subordinate lawyers in the firm to ensure reasonable measures are being taken to ensure the trust account is being handled in a way that is compatible with Attorney’s professional obligations. See Rules 4–5.1 and 4–5.3.