Queensland Law Society

Left holding the baby? – disputed funds in trust

Trust balances subject to competing claims can create serious problems for the solicitor in whose account the funds are deposited, especially as obligations as trustee and obligations to the client may be quite distinct and even conflicted. Whether the funds arose through a joint retainer gone wrong or simple settlement retentions, disposing of the funds can be a challenge; this article provides some practical tips on how to reduce the chances of a problem, and what to do if despite your best efforts a dispute still arises.