How should a barrister handle client funds and trust accounting?

• A. Use client funds for personal expenses if approved by solicitor.
• B. Keep client funds separate; comply with trust accounting rules; maintain accurate records and protect client interests.
• C. Keep no records of client funds.
• D. Mix client funds with personal funds to simplify use.

Answer: (B)

Handling client funds is a fiduciary duty that requires keeping client money completely separate from personal funds, following trust accounting rules, and maintaining precise records to protect the client’s interests. This is essential because it prevents any mixing of funds, reduces the risk of misappropriation, and provides clear accountability for how every dollar is received and disbursed. In practice, this means depositing client money into a proper trust or client account, keeping a dedicated client ledger, recording every receipt and payment, and regularly reconciling the account. It also means only using those funds in accordance with client instructions and the terms of the engagement, with any interest handled as agreed. Breaches of this duty—such as using client funds for personal expenses, failing to keep accurate records, or commingling funds—erode trust, invite disciplinary action, and can expose the barrister to civil liability.