Trust Administration Fee Invoices

Trust Administration Fee Invoices

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.

A nil TAF return is not required for quarters in which there were no applicable trust deposits.

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.