Written Direction Money

Trust money must be deposited into a practice's general trust account as soon as practicable after the money is received by the practice.

The requirement does not apply where the money is received in a form other than cash (e.g. cheque) and the practice holds a written direction by an appropriate person to deal with the money otherwise than by depositing it into the general trust account. This kind of trust money is often referred to as written direction money.

A practice must not deposit trust money into a non-ACT trust account unless authorised to do so by the Council.

The practice must retain the written direction for seven years after finalisation of the matter to which the direction related.

These rules can be found in s 222 & s 226A of the Legal Profession Act 2006 (ACT), and s 40 of the Legal Profession Regulation 2007 (ACT).

If you have any questions about this topic, please contact the Society's Trust Account Compliance Officer (trustaccounts@actlawsociety.asn.au).