Model Rule 1.15: Safekeeping Property
Rule 1.15 requires lawyers to safeguard client and third-party property that comes into their possession in connection with representation, keeping it separate from the lawyer's own property, properly accounted for, and promptly delivered when due. It covers client funds, documents, and other valuables held by the lawyer in a fiduciary capacity.
When it applies
This comes up whenever a lawyer holds a retainer, settlement proceeds, escrow funds, or client documents, and it is one of the most heavily tested MPRE topics because it involves precise, bright-line accounting duties. It also frequently arises in disputes between co-counsel, opposing counsel, or third parties over competing claims to funds.
What the rule requires
- Client and third-party property must be held in a separate trust account, distinct from the lawyer's own operating funds (no commingling).
- Complete records of trust account funds and other property must be kept for five years after termination of representation.
- Upon receiving funds or property in which a client or third person has an interest, the lawyer must promptly notify that person.
- The lawyer must promptly deliver funds or property that the client or third person is entitled to receive, and provide a full accounting upon request.
- When a lawyer possesses funds in which two or more persons (e.g., lawyer and client, or two claimants) claim interests, the disputed portion must be kept separate until the dispute is resolved; undisputed portions must be distributed promptly.
- Legal fees and expenses paid in advance must be deposited into the client trust account and withdrawn only as fees are earned or expenses are incurred.
Exceptions
- A lawyer may deposit a small amount of the lawyer's own funds into the trust account solely to cover bank service charges on that account.
- Disputed funds only need to be segregated to the extent of the dispute; the undisputed portion must still be promptly distributed.
How the MPRE tests Model Rule 1.15
- Students forget that Rule 1.15 applies to third-party funds (e.g., a medical lien holder), not just client funds — the lawyer owes duties to non-clients holding an interest in the property.
- Confusing 'prompt notification' and 'prompt delivery' as the same step — notification of receipt and actual delivery/accounting are distinct duties.
- Assuming any commingling automatically equals conversion or theft — the rule violation is commingling itself, regardless of whether the lawyer intended to misuse funds.
- Overlooking that disputed funds must stay in trust until resolved, while quickly assuming the lawyer can disburse everything to the client once the client demands it.
Example
A lawyer settles a personal injury case and receives a check that must cover the client's recovery and a doctor's outstanding lien. The lawyer deposits the check into the trust account, notifies both the client and the doctor, pays the undisputed amount to the client, but keeps the lien amount segregated because the client disputes the lien's validity. This complies with Rule 1.15 because the disputed funds remain in trust until resolved while the undisputed portion is promptly released.
Related rules
On the MPRE
A plain-English summary of the ABA Model Rule, not the rule text. Your jurisdiction's version of the rule controls in practice.