Can a Washington lawyer keep a client trust account in a Canadian bank?
Apply this to your situation
This page answers the general question as of 1986. Ezel answers yours: whether it's allowed on your facts, under the current rules of professional conduct in your state, with citations.
Plain-English summary
The committee was of the opinion that RPC 1.14(c) mandated that all lawyers handling client trust funds comply with that rule. If the bank in Canada was a bank such as is described by RPC 1.14(c), the committee saw no difficulty in establishing a trust account there. Otherwise, the committee was of the opinion that, as the rule was then written, the lawyer would be required to comply with it.
If the lawyer felt that the rule created an impracticality or a breach of other responsibilities to the client, the committee's only suggestion was that the lawyer seek a change in the rule by addressing the matter to the Board of Governors.
Currency note
This opinion was issued in 1986, before the 2006 revisions to the Washington Rules of Professional Conduct. The trust-account and safekeeping requirements then in RPC 1.14(c) were later renumbered (the safekeeping rule corresponds to Model Rule 1.15) 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 Treat this page as historical context, not current guidance.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: Can a lawyer hold client trust funds in a foreign (Canadian) bank?
A: Per the opinion, only if the Canadian bank is a bank such as is described by RPC 1.14(c); in that case the committee saw no difficulty establishing the account there.
Q: What if the Canadian bank does not meet RPC 1.14(c)?
A: The committee was of the opinion that, as the rule was then written, the lawyer would be required to comply with it.
Q: What did the committee suggest if the rule was impractical?
A: The committee's only suggestion was that the lawyer seek a change in the rule by addressing the matter to the Board of Governors.
Background and rules framework
The opinion applies Washington RPC 1.14(c) on the safekeeping of client trust funds, the safekeeping rule corresponding to Model Rule 1.15. The committee read the rule to require all lawyers handling client trust funds to comply, so a Canadian bank could hold a trust account only if it fit the kind of bank the rule described.
Citations and references
Rules of Professional Conduct:
- Washington RPC 1.14(c) (safekeeping of client trust funds), the safekeeping rule corresponding to Model Rule 1.15.
See also
- WSBA Ethics Op. 969: a trust account at a brokerage and the qualified-public-depository requirement
- WSBA Ethics Op. 1031: which trust-account rules apply in a multistate practice
- WSBA Ethics Op. 959: a trust account in a multi-state practice
Source
- Landing page: https://ao.wsba.org/print.aspx?ID=163
Original opinion text
Reproduced from the official source for research purposes. The linked source is authoritative.
Advisory Opinion: 1052
Year Issued: 1986
RPC(s): RPC 1.14(c)
Subject: Maintaining trust account in Canadian bank
The Committee was of the opinion that RPC 1.14(c) mandates that all lawyers handling client trust funds comply with that rule. Therefore, the Committee was of the opinion that if the bank in Canada is a bank such as is described by RPC 1.14(c), there would be no difficulty in establishing a trust account there. Otherwise, the Committee was of the opinion that as the rule is now written you would be required to comply with it. If you feel that such a rule creates an impracticality or a breach of other responsibilities to your client, the Committee's only suggestion is that you should seek a change in the rule by addressing the matter to the Board of Governors.
Get today's answer for your situation
You just read a 1986 opinion on this question. Ezel checks the current rules of professional conduct in your state and answers your specific situation, with citations.
Opens in Ezel Pro. Every answer cites the rules it relies on.