Trust Reporting

Each year your firm must file an Annual Report with the Law Society (Rule 1604), whether you have received money in trust during that year or not. The Annual Report is an online report that is submitted through the member database, Alinity. See the section on Trust Account Forms on the Law Society Website for further information about the Annual Report, including links to forms, and FAQ’s.

The Trust Safety Department provides notification, annually (via email, expected mid-January), to the Designated Representative of the firm advising the Annual Report is ready to be completed. We are able to give access to the bookkeeper of the firm to assist in completing the form but it is important to note the Designated Representative must review and submit the Annual Report and is also responsible to submit any follow-up responses once the report has been reviewed by the Trust Safety Department. You must file the Annual Report by March 31 (Rule 1604(1)).

Once the Annual Report is submitted an invoice will be generated for the firm’s Trust Safety Administration Fee, which is a $500 fee charged to all firm’s that operate a trust account and is payable to the Law Society annually (Rule 1605). This fee supports the firm’s use of resources from the Trust Safety Department and replaces the requirement for firms to submit report completed by an Accountant (formerly, the Accountants Report TA-5/TA-5R).

If a firm is terminating, the last reporting period ends on the day your firm ceases to practise, and you must make a final filing of the Annual Report within three months of winding up.

If you are late filing, the penalty is $500 per month for each month until the Law Society receives the reports. You may be suspended if you are in breach of your filing obligations (Rule 1612).

 

Application to Pay Unclaimed Trust Funds to the LSS

If you have been holding client trust funds on behalf of a client that you have been unable to locate for two years, you may apply to the Executive Director to pay those funds to the Law Society under Rule 1702. On so paying, your liability to pay the money to the person on whose behalf it was held, or to that person’s legal representative, is extinguished. The Law Society maintains the money.

The Unclaimed Trust Funds – Payment Application (Form TA-9) requires you to specify the efforts you have made to locate the person and any unfulfilled trust conditions or undertakings in relation to the funds.