Rule LPORPC 1.12B - REQUIRED TRUST ACCOUNT RECORDS(a) An LPO or Closing Firm must maintain current trust account records. They may be in electronic or manual form and must be retained for at least six years after the events they record. At minimum, the records must include the following: (1) Checkbook register or equivalent for each trust account, including entries for all receipts, disbursements, and transfers, and containing at least:(i) identification of the client matter for which trust funds were received, disbursed, or transferred;(ii) the date on which trust funds were received, disbursed, or transferred;(iii) the check number for each disbursement;(iv) the payor or payee for or from which trust funds were received, disbursed, or transferred; and(v) the new trust account balance after each receipt, disbursement, or transfer;(2) Individual client ledger records containing either a separate page for each client or an equivalent electronic record showing all individual receipts, disbursements, or transfers, and also containing:(i) identification of the purpose for which trust funds were received, disbursed, or transferred;(ii) the date on which trust funds were received, disbursed or transferred;(iii) the check number for each disbursement;(iv) the payor or payee for or from which trust funds were received, disbursed, or transferred; and(v) the new client fund balance after each receipt, disbursement, or transfer;(3) Copies of any agreements pertaining to fees and costs;(4) Copies of any statements or accountings to clients or third parties showing the disbursement of funds to them or on their behalf;(5) Copies of bills for legal fees and expenses rendered to clients;(6) Copies of invoices, bills or other documents supporting all disbursements or transfers from the trust account;(7) Bank statements, copies of deposit slips, and cancelled checks or their equivalent;(8) Copies of all trust account client ledger reconciliations; and(9) Copies of those portions of clients' files that are reasonably necessary for a complete understanding of the financial transactions pertaining to them.(b) Upon any change in the LPO or Closing Firm practice affecting the trust account, including dissolution or sale of a Closing Firm business, or suspension or other change in the license status of an LPO, the LPO or Closing Firm must make appropriate arrangements for the maintenance of the records specified in this Rule.Wash. Admi. And. Prac. R. LPORPC 1.12B
Adopted effective 1/1/2009. Amended effective 1/1/2023;6/27/2023.Comment
[1] LPOs must assure that IOLTA accounts are used in any transaction involving the practice of law for others. In addition to closings where legal documents have been selected, prepared or completed by LPOs, IOLTA accounts must hold funds for closings involving legal documents prepared by lawyers. Such transactions would include extensions of credit with loan documents prepared by a lender's lawyer, as well as sale closings with deeds and other legal documents prepared by the clients' lawyers.
[2] The Escrow Agent Registration Act under chapter 18.44 RCW provides procedures for trust account recordkeeping substantially similar to the provisions contained within LPORPC 1.12B. Compliance with the provisions under chapter 18.44 RCW should meet the provisions of this rule.