Client money never belongs to the firm, and taking it out of the client account is one of the most tightly controlled things a solicitor does. Every withdrawal needs both a permitted reason and proper authority — and getting it wrong isn't just a slip, it can amount to professional misconduct. This lesson gives you a clear, practical grip on when money can leave the client account, how much, and on whose say-so.
What this lesson covers:
- General Principles and Permitted Categories — the two hurdles every withdrawal must clear, the closed list of permitted purposes, and where proper authority comes from.
- The No-Cross-Client Rule — why each client's balance stands alone, and how to fund a shortfall the right way.
- Withdrawing the Firm's Costs and Disbursements — billing your fees correctly, paying disbursements from client money, and handling agreed fees.
- Correction of Errors and Liens — reversing money paid in by mistake, and when a lien lets you take payment.
- Banking Facilities, Stakeholder and Untraced Clients — the banking-facilities ban, releasing stakeholder and joint-account money, and clients you can't trace.
- Records, Reconciliations and Breaches — what to record, how often to reconcile, and the immediate fix when money is wrongly withdrawn.