Unclaimed Trust Money Policy

Purpose

Money we hold in trust belongs to the person entitled to it, not to NEO. Sometimes we can't hand it back: a refund cheque isn't cashed, an e-Transfer comes back, or we lose touch with the person. As a licensed paralegal firm, we must still account for every dollar. This policy explains what we do with that money and how it can be claimed.

Returning money

When a matter ends, money left in trust is returned promptly, and under our standard retainer agreement within 30 days after the final account, after deducting any delivered account still owed. It goes to the person entitled to it, normally the person who paid, by the same method where possible, under our Payments and Refunds Policy. Where someone else paid, the written arrangement made at the start applies, under our Third-Party Payers Policy.

When a refund doesn't arrive

If a cheque isn't cashed, an e-Transfer is declined or expires, or a card refund fails, we cancel the payment where needed, record the money as held in trust for the matter again, and try another way. We confirm the person's identity and any new payment details before sending money anywhere new, under our Fraud Prevention Policy. We pay someone else only on the written direction of the person entitled, or to their estate trustee once that authority is shown.

Trying to find you

We make reasonable efforts to reach the person entitled, from time to time, using the contact details we have: phone, email, the client portal and a letter to the last known address. We may take other reasonable steps, such as checking public sources, without revealing anything confidential. We keep a record of our attempts on the file.

We may rely on the last contact details you gave us, so please keep them up to date, as your retainer agreement and our Client Service Standards Policy ask.

It stays your money

Unclaimed money:

• stays in our trust account, on the ledger for the matter, and is checked in every monthly reconciliation under our Trust Accounting and Client Money Policy;
• is never moved to the firm's own account, written off or treated as the firm's money, however small the amount;
• is used for a fee only where an account was delivered as the rules allow, and is never reduced by a holding or dormancy charge.

A file can't be closed while money is held in trust for it, under our File Closing and Retention Policy. Interest earned on a general (mixed) trust account is paid to the Law Foundation of Ontario, as the Law Society Act requires, so NEO earns nothing on money held for you.

After two years

If we have held the money for at least two years and, despite reasonable efforts, still can't find the person entitled, we may apply to the Law Society of Ontario for permission to pay it into its Unclaimed Trust Fund, as the Law Society Act allows. We explain our efforts, pay only if the Law Society approves and on its terms, and give it the information and records it asks for. Until then the money stays in our trust account. Once it is paid over with approval, the Law Society holds it as trustee in our place, as the Act provides.

If NEO stops practising, money still in trust is dealt with under our Business Continuity and Succession Policy and these same rules.

Claiming it later

The Law Society holds money paid into its Unclaimed Trust Fund so it can be returned to the people entitled to it. A person entitled can make a claim to the Law Society under the Act and the Law Society's rules; under the Act, a claim is paid without interest, and a claimant whose claim is refused may be able to apply to the court. The Law Society's website (lso.ca) explains how to claim. If you ask, we will help with what our records show about the money, for as long as we keep those records and subject to our duty of confidentiality.

Our responsibility

To the extent permitted by law, NEO is not responsible for delay caused by out-of-date contact details, or by a bank, card issuer or payment service. Nothing in this policy limits any right under the Law Society Act or the Law Society's rules.

Review

This policy is reviewed at least once a year, and whenever the Law Society Act or the Law Society's By-Laws or rules change. The principal approves every change.

Questions

Email info@neolegalservices.com, call 647-200-3526 or toll-free 888-519-2435, or write to us at Unit 236, 1099 Kingston Road, Pickering, Ontario L1V 1B5.