Must a lawyer who serves as trustee, guardian, or executor hold those funds in a trust account under RPC 1.14?

Plain-English summary

The committee considered the handling of funds a lawyer receives in the role of fiduciary, when acting as a trustee, guardian, or executor for family members or for clients who have become close friends. The committee was of the opinion that whether those funds must be held in conformance with RPC 1.14 depended on whether they were client funds in the possession of the lawyer.

If they were client funds in the lawyer's possession, the committee was of the opinion that they would have to be deposited into the type of account required by RPC 1.14. If, on the other hand, the funds remained the property of the client, such as funds received from a business being managed by the fiduciary, the committee was of the opinion that those funds would remain client funds and would not necessarily need to be held in conformance with RPC 1.14.

Currency note

This opinion was issued in 1986, before the 2006 revisions to the Washington Rules of Professional Conduct. RPC 1.14 on safekeeping client funds was later renumbered and amended. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Does RPC 1.14 automatically apply to every dollar a lawyer handles as trustee, guardian, or executor?

A: No. The committee made the answer turn on whether the funds were client funds in the possession of the lawyer.

Q: When must the fiduciary funds go into a trust account?

A: The committee was of the opinion that if they were client funds in the lawyer's possession, they would have to be deposited into the type of account required by RPC 1.14.

Q: Are there funds that would not need to be held under RPC 1.14?

A: The committee was of the opinion that funds remaining the client's property, such as funds received from a business being managed by the fiduciary, would not necessarily need to be held in conformance with RPC 1.14.

Background and rules framework

The opinion applies Washington RPC 1.14 on safekeeping client funds, corresponding to Model Rule 1.15, to funds a lawyer receives while serving as a fiduciary. The committee made the analysis fact-specific, with the key factor being whether the funds were client funds in the lawyer's possession.

Citations and references

Rules of Professional Conduct:

• Washington RPC 1.14 (safekeeping client funds), corresponding to Model Rule 1.15.

See also

• ABA Formal Op. 02-426: a lawyer serving as a fiduciary for an estate or trust
• WSBA Ethics Op. 1031: which state's trust-account rules apply in a multistate practice
• WSBA Ethics Op. 1029: distributing pooled trust funds when clients cannot be reached

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=143

Original opinion text

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

Advisory Opinion: 1032
Year Issued: 1986
RPC(s): RPC 1.14
Subject: Trust funds received by lawyer acting as fiduciary

The Committee considered your inquiry regarding the handling of funds received by a lawyer in his role as a Fiduciary when acting as a trustee, guardian or executor for family members or for clients who have become close friends. The Committee was of the opinion that the answer to the question of whether those funds must be held in conformance with RPC 1.14 depended upon whether they were client funds in the possession of the lawyer. If they were, the Committee was of the opinion that they would have to be deposited into the type of account required by RPC 1.14. On the other hand, if the funds remained the property of the client, such as funds received from a business being managed by the fiduciary, then those funds would remain client funds and would not necessarily need to be held in conformance with RPC 1.14.