Can a client waive the rule that a lawyer's trust funds be kept in a 'qualified' account?

Plain-English summary

At the inquirer's request, the committee reviewed its previous informal opinion on the RPC 1.14(c) requirement that client trust funds be deposited in "qualified accounts," and on whether that rule is mandatory and may not be waived by the client. The committee continued its opinion that the rule is mandatory and may not be waived by the client.

The committee pointed out, however, that the lawyer may distribute the funds to the client, and the client may then deposit the funds into any account the client may wish. The committee also directed that the inquirer be given a copy of Formal Opinion 177, which addresses the concern about withdrawal of client funds prior to the date of clearance of checks or drafts.

Currency note

This opinion was issued in 1987, before the 2006 revisions to the Washington Rules of Professional Conduct. The trust-account 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 Treat this page as historical context, not current guidance.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 client waive the qualified-account requirement for trust funds?

A: No. The committee continued its opinion that RPC 1.14(c)'s requirement to deposit client trust funds in qualified accounts is mandatory and may not be waived by the client.

Q: Is there any way the funds can end up in an account of the client's choosing?

A: Per the opinion, yes, but indirectly: the lawyer may distribute the funds to the client, and the client may then deposit them into any account the client wishes.

Q: What addressed early withdrawal before checks clear?

A: The committee directed the inquirer to Formal Opinion 177, which addresses the concern about withdrawing client funds before the date checks or drafts clear.

Background and rules framework

The opinion applies Washington RPC 1.14(c), which then required client trust funds to be held in qualified accounts; the safekeeping rule corresponds to Model Rule 1.15. The committee treated the qualified-account requirement as a mandatory rule the client cannot waive, distinguishing the client's freedom to choose an account only after the funds are distributed out of trust.

Citations and references

Rules of Professional Conduct:

• Washington RPC 1.14(c) (qualified trust accounts for client funds), the safekeeping rule corresponding to Model Rule 1.15.

Other opinions cited:

• WSBA Formal Opinion 177: withdrawal of client funds prior to the date of clearance of checks or drafts.

See also

• WSBA Ethics Op. 969: a trust account at a brokerage and the qualified-public-depository requirement
• WSBA Ethics Op. 1052: maintaining a trust account in a Canadian bank
• WSBA Ethics Op. 1010: interest earned on a trust account before the IOLTA rule

Source

• Landing page: https://ao.wsba.org/print.aspx?ID=177

Original opinion text

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

Advisory Opinion: 1066
Year Issued: 1987
RPC(s): RPC 1.14(c); Formal Opinion 177
Subject: Trust account; "qualified" accounts

At your request, the Committee reviewed its previous informal opinion regarding this requirement of RPC 1.14(c) that client trust funds be deposited in "qualified accounts", and that such a rule is mandatory and may not be waived by the client. The Committee continued its opinion that the rule is mandatory and may not be waived by the client. However, the Committee did want to point out to you that the lawyer may distribute the funds to the client and the client may then deposit the funds into any account the client may wish. The Committee also directed that I provide you with a copy of Formal Opinion 177, which addresses your apparent concern about the withdrawal of client funds prior to the date of clearance of checks or drafts.