Summary Overview
To ensure clients and attorneys have the most up to date information about their Trust accounts and advanced fees, Gravis Law created the following policy. Attached to this article is the PDF procedure, or how accounting and billable staff will work together to ensure proper execution of the new policy. Below are the key points of reference for all staff, with links to the relevant article if one exists in request hub.
Initial Deposit:
Client must make initial
deposit within two days of signing the engagement letter. Often this is taken
by the engaging attorney, but if engagement letter is signed and trust deposit
has not been taken, attorney or paralegal must select “Retainer Status: Contact Client For
Retainer” in request hub when submitting the
signed engagement letter to accounting. Trust specialist will follow up with
client directly and will notify attorney when trust payment is made, or if two
days have elapsed with no trust deposit. More information on how to take a payment can be found in the Taking Payments knowledge base article.
Replenishment Types
Clients will have
choice of two different types of replenishment types as outlined in most
engagement letters. These may be automatic (client is charged a set amount each
month to a card or bank on file) or manual (Trust Specialist will reach out to
client for payment) Replenishments offered:
- Refill Trust to $X (most preferred)
- Deposit $X Each Month (most common)
Trust Specialist will log which type of
replenishment system the client is on, and after invoicing, will begin their
process to refill the client’s trust accounts to the expected level using
available tools. To learn more, visit Trust Replenishments in the knowledge base.
Using or Disbursing Trust Funds
Trust funds can be
processed out of trust and into operations or as a check pursuant to each
state’s IOLTA guidelines. Gravis Law requires trust funds to clear before any
disbursement or transfer can be made – typically 7 business days if echeck or check;
2 business days if wire, debit, or credit card; and immediately if cash or
cashiers check. Trust funds are used to pay client costs and monthly
invoices.
Monitoring Funds
Trust balances will be available in the
attorney’s PowerBI dashboard. These balances are updated three times per month
– after invoicing, midmonth, and before invoicing. Attorneys or Paralegals must file tickets after each
review for any refunds, updates, or questions after each Trust Update, and the attorney is required to meet with the Trust Specialist once per quarter to review all their
client’s trust accounts. To learn more about your Trust Report, visit the
Trust Report knowledge base article.
Client Payment Declines/ Client Refusals
If client refuses
or is unable to make expected trust payments, Trust Specialist will notify
client’s primary attorney. If new agreement is negotiated, attorney will
provide copy of new payment terms to Trust Specialist to execute. If no terms
can be reached, it is recommended attorney cease work until terms can be
reached or withdraw.
Refunding Remaining Funds
Upon
completion of the matter, client refunds must be requested by the attorney.
Once requested, accounting will process a final invoice for outstanding costs
and time cards for approval, verify mailing address, confirm final trust
balance, and either mail check certified to client or provide to paralegal to
mail certified to the client with closing letter. To learn more about refunding final trust balances, visit the
Trust: Client Refunds page in knowledge base.
Incentive Programs
An attorney may offer an incentive to the client to maintain
a balance in trust. If the trust balance runs out, the discount should be
stopped. Common incentives for trust replenishments:
- 5%
discount on attorney time if matter is expected to be short, initial trust
deposits meet general recommendations, automatic replenishments are active.
- 10%
discount on attorney time if matter is expected to be long, initial trust
deposits exceed general recommendations, automatic replenishments are active.