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Lawyers and Conveyancers Act 2006

Conduct of practice by practitioners - Trust accounts

113: Protection of money received

You could also call this:

"Keeping clients' money safe from other debts"

Illustration for Lawyers and Conveyancers Act 2006

You cannot use money received for trust accounts to pay debts of other creditors. This money is protected from being taken by courts to pay other debts. You can still make a claim against this money if you have a valid reason to do so, as stated in section 110.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM366143.

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112: Obligation to keep records in respect of trust accounts and valuable property, or

"Keep Records of Money and Property Held in Trust"

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114: Duty of practitioners to ensure that funds earn interest, or

"Lawyers must help clients' money earn interest, unless it's not reasonable or the client says no."

Part 6Conduct of practice by practitioners
Trust accounts

113Protection of money received

  1. No money to which section 110(1) or (2) applies is available for the payment of the debts of any other creditor of the practitioner, related person or entity, or incorporated firm; nor is any such money liable to be attached or taken in execution under the order or process of any court at the instance of any such creditor.

  2. Nothing in section 110 or this section takes away or affects any just claim or lien that a practitioner, related person or entity, or incorporated firm who holds money to which section 110(1) or (2) applies may have against that money.

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