Ezel / Ethics Opinions / NYSBA
NYSBA 2025-04-09

Can a lawyer make a payment from the client trust account through an online portal like Pay.gov instead of by check?

Short answer: Yes, with the client's prior written approval. The opinion concludes that an online payment through Pay.gov is a 'bank transfer' within Rule 1.15(e), so a lawyer may make an otherwise-proper trust-account payment that way if the client approves it in writing in advance.
Disclaimer: Advisory only. Not binding precedent.
About this page: The plain-English summary, reader guidance, and Q&A below were written by Ezel based on the official ethics opinion. The original opinion (linked at the bottom of this page) is the authoritative source for any reliance.

NYSBA Ethics Opinion 1281: Paying From the Trust Account Through Pay.gov

Short answer: The opinion concludes that, with the client's prior written approval, a lawyer may make an otherwise-proper payment of funds from the lawyer's trust account in the form of an online payment through Pay.gov, because such a payment is a "bank transfer" within the meaning of Rule 1.15(e).

Disclaimer: This is an advisory ethics opinion. Advisory opinions are not binding; they interpret the New York State Bar Association's view of New York's Rules of Professional Conduct and are persuasive authority. This summary is for research purposes only and is not legal advice. Verify current rules before acting on any specific guidance.

About this page: The plain-English summary and Q&A below were written by Ezel based on the official opinion. We do not reproduce the opinion text on this page; follow the linked source for the official text, which controls.

Plain-English summary

The inquirer's clients are criminal defendants ordered to make criminal debt payments (fines or restitution) to the Clerk of a U.S. District Court. The court does not accept cash and requires payment by check or through Pay.gov, the U.S. Treasury's online payment portal, which for these payments requires a debit card or direct debit. To help clients without bank accounts, the inquirer deposits their cash into the trust account and issues a check to the Clerk; he asks whether he may instead pay through Pay.gov.

The opinion applies Rule 1.15(e), which requires that special-account withdrawals be made only to a named payee, not to cash, and be made by check or, with the prior written approval of the party entitled to the proceeds, by bank transfer. The opinion reasons that although "bank transfer" is not statutorily defined, the phrase is broad enough to include transfers via the ACH network initiated through Pay.gov, aligning with the Washington State Bar's Advisory Opinion 2210 (2012). The opinion states that the purpose of Rule 1.15(e), to prohibit withdrawals that are not secure or readily traceable, is consistent with allowing a Pay.gov payment, and notes that the ABA Model Rules on Client Trust Account Records and Comment [4] to Rule 1.15(h) likewise contemplate authorized electronic transfers.

The opinion concludes such a payment is also permissible under Rule 1.15(c)(4) (prompt payment to those entitled), and that the lawyer must follow the same requirements as other withdrawals under Rule 1.15(d) (only a lawyer signatory may initiate, confirmations must be retained, and the payment must be recorded in the ledger) and Rule 1.15(e) (the client's advance written approval). The opinion adds that lawyers should avoid scheduled or recurring automatic withdrawals, which could trigger an ACH debit not covered by a cleared deposit and lead to conversion of other clients' funds.

In practice

Under this opinion, a lawyer may pay an otherwise-proper trust-account obligation through Pay.gov if the client gives prior written approval, because the payment is a "bank transfer" under Rule 1.15(e). Per the opinion, the lawyer must still meet Rule 1.15(d): only a lawyer signatory may initiate the payment, confirmations must be retained, and the payment must be recorded in the trust-account ledger; the opinion also states lawyers should avoid scheduled or recurring automatic withdrawals.

Common questions

Q: Can a lawyer pay from the trust account through Pay.gov instead of by check?

A: Per the opinion, yes, with the client's prior written approval, because a Pay.gov payment is a "bank transfer" within the meaning of Rule 1.15(e).

Q: What conditions apply to such a payment?

A: Per the opinion, the payment must go to a named payee, only a lawyer signatory may initiate it, confirmations must be retained, the payment must be recorded in the ledger, and the client must approve it in writing in advance.

Q: Are recurring automatic withdrawals from the trust account a concern?

A: Per the opinion, yes. The opinion states lawyers should avoid scheduled or recurring automatic withdrawals, because an automatic ACH debit not covered by a cleared deposit could lead to conversion of other clients' escrow funds.

Background and rules framework

The opinion interprets New York Rule 1.15(e) (authorized signatories and the means of withdrawal, including bank transfer with the client's prior written approval), Rule 1.15(c)(4) (prompt payment), and Rule 1.15(d) (recordkeeping and signatory requirements). These correspond to ABA Model Rule 1.15.

Citations and references

Rules of Professional Conduct:

  • New York Rules of Professional Conduct 1.15(c)(4), 1.15(d), 1.15(e)
  • ABA Model Rule 1.15 and the ABA Model Rules on Client Trust Account Records (analogues)

Other opinions cited:

  • Washington State Bar Advisory Op. 2210 (2012): a debit-card or electronic payment from a trust account is a bank transfer

See also

Source