Trust Administration Fee

Application of the Trust Administration Fee

Rule 2-110 requires lawyers to remit a trust administration fee (TAF) of $20 for each distinct client matter with trust funds. The TAF applies to all client matters in which trust funds have been received for any purpose other than for fees or retainers.

The exclusion for “fees or retainers” was to exempt the application of TAF to circumstances where a trust account was opened only to accept fees for legal services, or a retainer for future legal services. Rule 2-110 does not include an exemption for disbursements. Thus, where a trust account is used to deposit funds to pay disbursements to third parties in the course of delivering legal services, TAF will apply.  

The TAF is applicable to each distinct client matter that the lawyer is retained, which may require the payment of multiple TAF for the same client. 

Rule amendment 

The Benchers considered recommendations by the Trust Review Task Force regarding the collection of the TAF. At their October meeting, the Benchers approved amendments to Rule 2-110 so that the TAF will be payable for each client matter where the lawyer receives trust funds in an aggregate amount greater than $10,000. This change comes into effect on January 1, 2026.

The change addresses issues relating to the exemption of the TAF for “fees and retainers”, but also to recognize that for low-value matters, the imposition of TAF may be a burden. Therefore, there will be no requirement to pay the TAF until the threshold of $10,000 deposited into the trust fund has been passed. To address client matters that extend over the transition date of January 1, the Benchers agreed that amounts deposited in trust before January 1 will not be applied to the $10,000.

Reporting period

The TAF is payable on a quarterly cycle and is due in the quarter year corresponding to the first applicable trust deposit for each client matter. The remittances are due within 30 days of each quarter year as follows:

The remittance of the quarterly TAF is not related a lawyer’s billing cycle or the completion of the client matter. It is at the lawyer’s discretion whether to pass the cost of the TAF to the client or absorb the cost as a firm expense.

Under Rule 2-111, a late fee of 5% applies to all late remittances.

Reporting and remitting

Before the due date each quarter, lawyers must:

Step 1: Log in to create and complete a new invoice

Step 2: Print and sign the invoice

Step 3: Remit the invoice and payment to the Law Society

Cheque option

Deliver the TAF invoice and cheque to:

Finance Department
The Law Society of BC
845 Cambie Street
Vancouver BC  V6B 4Z9

On-line option

Remit payment using online banking and email the TAF invoice to the Finance department at finance@lsbc.org. Please allow 3-5 business days for processing the payment. Please note, online payments will not be processed without a corresponding TAF invoice.

Forms and resources

TAF Filing Instructions 

Trust Accounting Handbook