You are watching a webinar preview. To view the full webinar, log in to your Justia Connect account or sign up for free.

How To Keep It Clean With the Green: Trust Accounting Do’s and Don’ts

Trust account problems remain one of the top reasons attorneys are disciplined in the U.S. Certainly, there have been and will continue to be attorneys whose trust accounting activities are egregious and, in some situations, criminal. However, this does not account for all the problems. Far too often, an attorney was less than diligent about maintaining proper and appropriate financial practices in the office, and things simply got out of hand. This program will start with a discussion of trust accounting basics, address common missteps lawyers make, and share best practices to help attorneys stay on the right path.

A Sampling of Attendee Takeaways:

An explanation of the basics of setting up and maintaining a client trust account
An awareness of the importance of attorney oversight of client property coupled with the details of how to accomplish this
An understanding of the common missteps that others make
How a misunderstanding of banking terms and practices can lead to problems
Knowledge of how to avoid becoming a victim of wire fraud

Duration of this webinar: 60 minutes

Originally broadcast: November 17, 2025 11:00 AM PT

Webinar Highlights

This webinar is divided into section summaries, which you can scan for key points and then dive into the sections that interest you the most.

00:00 Introduction

Mark Bassingthwaighte is introduced as the speaker, with extensive experience in risk management and legal ethics. Mark begins the presentation by discussing the importance of IOLTA accounts for managing client funds separately from personal funds. He explains the purpose of IOLTA accounts and the rules governing them, emphasizing their role in safekeeping client property.

04:00 IOLTA Accounts and Ethical Considerations

Mark explains that IOLTA accounts are used to pool client funds, with interest often benefiting legal aid organizations. He outlines the requirements for financial institutions holding IOLTA accounts, including federal insurance and notification of overdrafts. Mark stresses the importance of complying with Rule 1.15, which mandates prompt notification and accounting of client funds. He advises maintaining trust account records for at least five years after closing a matter. Mark warns against poor record-keeping and emphasizes that restitution does not avert disciplinary consequences.

09:02 Common Missteps and Best Practices

Mark stresses that client funds must always be treated as belonging to the client. He shares stories of attorneys misusing client funds, highlighting the severe consequences of such actions. Mark advises against using client funds for personal expenses or as leverage in disputes. He explains the concept of non-refundable retainers and the importance of understanding their limitations. Mark warns against co-mingling client funds with personal or firm funds and advises maintaining clear separation.

27:49 Trust Account Oversight and Security

Mark emphasizes the importance of proper oversight and documentation in managing trust accounts. He shares a story of a firm that faced severe consequences due to lack of oversight and theft by non-attorneys. Mark advises attorneys to be involved in financial oversight, even if they hire others to manage accounts. He outlines a process for reviewing bank statements and reconciling accounts to ensure accuracy. Mark stresses the importance of addressing discrepancies immediately to avoid long-term issues.

48:14 Fraud Prevention and Cybersecurity

Mark discusses the importance of cybersecurity and fraud prevention in law firms. He shares a story of a law firm that lost money due to a breach and emphasizes the need for verification of wiring instructions. Mark advises implementing strong password policies and multi-factor authentication to enhance security. He warns about phishing and vishing scams, advising against trusting caller ID and sharing personal information. Mark highlights the importance of training and awareness to protect against cyber threats and fraud.

Please note this AI-generated summary provides a general overview of the webinar but may not capture all details, nuances, or the exact words of the speaker. For complete accuracy, please refer to the original webinar recording.

Speaker

Mark Bassingthwaighte Risk Manager
ALPS Insurance

Since 1998, Mark Bassingthwaighte, Esq., has been a Risk Manager with ALPS, the nation’s largest direct writer of lawyers’ malpractice insurance. In his tenure with the company, Mr. Bassingthwaighte has conducted over 1200 law firm risk management assessment visits; presented over 650 continuing legal education seminars throughout the United States; and written extensively on risk management, ethics, and technology. Mr. Bassingthwaighte is a member of the State Bar of Montana as well as the American Bar Association where he currently sits on the ABA Center for Professional Responsibility’s Conference Planning Committee.

Continuing Legal Education (CLE) Credits

*CLE credit is only available to Justia Connect Pros. Not a Pro? Upgrade today>>

California CLE

Status: Approved

Credits: 1.00 Legal Ethics

Earn Credit Until: June 30, 2026

New Jersey CLE

Status: Approved

Credits: 1.20 Ethics/Professionalism

Earn Credit Until: November 17, 2026

North Carolina CLE

Status: Approved

Credits: 1.00 Ethics

Earn Credit Until: February 28, 2026

Ohio CLE

Status: Approved

Credits: 1.00 Attorney Professional Conduct

Earn Credit Until: December 31, 2026

Pennsylvania CLE

Status: Approved

Credits: 1.00 Ethics, Professionalism, or Substance Abuse

Earn Credit Until: December 31, 2027

Texas CLE

Status: Approved

Credits: 1.00 Legal Ethics/Professional Responsibility

Earn Credit Until: October 31, 2026

Virginia CLE

Status: Approved

Credits: 1.00 Ethics

Earn Credit Until: October 1, 2026

This presentation is approved for one hour of Legal Ethics CLE credit in California, one hour of Ethics CLE credit in North Carolina, one hour of Attorney Professional Conduct CLE credit in Ohio, one hour of Ethics, Professionalism, or Substance Abuse CLE credit in Pennsylvania, and one hour of Ethics CLE credit in Virginia. This program has been approved by the Board on Continuing Legal Education of the Supreme Court of New Jersey for 1.20 hours of total CLE credit. Of these, 1.20 qualify as total hours of credit for Ethics/Professionalism. This course has been approved for Minimum Continuing Legal Education credit by the State Bar of Texas Committee on MCLE in the amount of 1.00 credit hours, of which 1.00 credit hours will apply to Legal Ethics/Professional Responsibility credit.

Justia only reports attendance in jurisdictions in which a particular Justia CLE Webinar is officially accredited. Lawyers may need to self-submit their certificates for CLE credit in jurisdictions not listed above.

Note that CLE credit, including partial credit, cannot be earned outside of the relevant accreditation period. To earn credit for a course, a lawyer must watch the entire course within the relevant accreditation period. Lawyers who have viewed a presentation multiple times may not be able to claim credit in their jurisdiction more than once. Justia reserves the right, at its discretion, to grant an attendee partial or no credit, in accordance with viewing duration and other methods of verifying course completion.

At this time, Justia only offers CLE courses officially accredited in certain states. Lawyers may generate a generic attendance certificate to self-submit credit in their own jurisdiction, but Justia does not guarantee that lawyers will receive their desired CLE credit through the self-submission or reciprocity process.

Looking for CLE credit? Visit CLE Dashboard

Watch Related Videos

CLE

Mark Bassingthwaighte ALPS Insurance

Succession Planning Unlocked Mastering the Transition From Leadership to Legacy

Watch Now

CLE

Tracy L. Kepler CNA's Lawyers Insurance Program

Fiduciary Fundamentals Managing Client Funds & Avoiding Common Missteps

Watch Now