Certified Legal Professional (CLP) Practice Exam

If an attorney withdraws money from a client trust account before fees are earned, what is the likely consequence?

1. A) The attorney may face disciplinary action

2. B) The attorney is perfectly within their rights

3. C) The attorney can withdraw any amount as needed

4. D) The attorney must wait for court approval

The correct answer is: A) The attorney may face disciplinary action

Withdrawing money from a client trust account before the fees are earned is a serious violation of ethical standards and legal regulations governing attorneys. The correct consequence for such an action is disciplinary action against the attorney. Trust accounts are designed to hold client funds separate from the attorney's own funds, ensuring that clients' money is protected and only used for authorized purposes, such as paying for services after they have been rendered to the client. When an attorney withdraws funds prematurely, it undermines the integrity of the trust account system and can be seen as misappropriation of client funds, which is a breach of fiduciary duty. Consequently, attorneys engaging in such misconduct can expect to face disciplinary measures from their state bar association, which may include sanctions, revocation of their license to practice law, or other penalties. This is crucial in maintaining the trust of clients and the public in the legal profession. The other options suggest a lack of accountability or misunderstanding about the ethics surrounding client funds. For instance, the notion that an attorney could withdraw any amount as needed or is perfectly within their rights contradicts established rules that protect client assets and dictate when funds can be transferred. Similarly, the requirement for court approval for withdrawals is not a standard practice in this context