How does a Missouri lawyer determine whether a bank is approved to hold a client trust account?

Plain-English summary

Rule 4-1.15(a)(2) requires a lawyer to keep client or third-person property in a trust account at an approved institution.

An institution must meet two conditions. It must be an eligible institution under Rule 4-1.145(a)(5), and it must be approved by the Advisory Committee of the Supreme Court of Missouri under Rules 4-1.145(a)(2) and 4-1.15(h).

The Advisory Committee publishes the list of approved financial institutions for lawyer trust accounts under paragraph (c) of the Advisory Committee Regulation to Rule 4-1.15. The opinion directs lawyers to that list on the Legal Ethics Counsel website.

In practice

Under this opinion, general eligibility does not alone establish that a bank may hold a Missouri lawyer trust account. The institution must also appear on the Advisory Committee's published approved list.

Common questions

Q: May any bank hold a Missouri lawyer's client trust account?

A: No. Rule 4-1.15(a)(2) requires an approved institution.

Q: What conditions must the institution meet?

A: It must qualify as eligible under Rule 4-1.145(a)(5) and be approved by the Advisory Committee.

Q: Who publishes the approved-institution list?

A: The Advisory Committee of the Supreme Court of Missouri.

Q: Where does the opinion direct lawyers to find the list?

A: On the Legal Ethics Counsel website.

Background and rules framework

Rule 4-1.15(a)(2) requires use of an approved institution. Rule 4-1.145 defines eligible and approved institutions, Rule 4-1.15(h) recognizes the approval framework, and the Advisory Committee Regulation assigns publication of the list.

Citations and references

Rules of Professional Conduct:

• Missouri Rules 4-1.145(a)(2), 4-1.145(a)(5), 4-1.15(a)(2), and 4-1.15(h)
• Advisory Committee Regulation to Rule 4-1.15, paragraph (c)

See also

• Minnesota LPRB Op. 12: Trust-Account Signatories
• New Jersey Opinion 574: Investment of Trust Funds
• Missouri Informal Op. 2020-19: Nonlawyer Trust-Account Access

Source

• Landing page: Missouri Informal Opinion 2020-23

Original opinion text

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

QUESTION: How can a lawyer determine if a particular financial institution is an approved institution for holding trust accounts?

ANSWER: A lawyer must hold property of clients or third persons that is in the lawyer’s possession in a client trust account located in an “approved institution.” Rule 4–1.15(a)(2). Approved financial institutions must be deemed as both “eligible institutions” per Rule 4–1.145(a)(5) and “approved institutions” by the Advisory Committee of the Supreme Court of Missouri. Rule 4–1.145(a)(2); see Rule 4–1.15(h). The Advisory Committee is responsible for publishing a list of approved financial institutions for lawyer trust accounts. See Advisory Committee Regulation to Rule 4–1.15, paragraph (c). The list of approved institutions is available on the Legal Ethics Counsel website.