A lawyer who discovers a trust shortage must immediately pay enough funds into the account to eliminate the shortage.

If the shortage is greater than $2,500 or if the lawyer cannot deliver up, when due, any trust funds held, the lawyer is required to immediately report the shortage and the circumstances to the Law Society.

Law Society Rules 3-74 states:

Trust shortage

3-74 (1) A lawyer who discovers a trust shortage must immediately pay enough funds into the account to eliminate the shortage.

(2) A lawyer must immediately make a written report to the Executive Director, including all relevant facts and circumstances, if the lawyer

 (a) discovers a trust shortage greater than $2,500, or

 (b) is or will be unable to deliver up, when due, any trust funds held by the lawyer.

(3) A trust shortage referred to in this rule includes a shortage caused by service charges, credit card discounts and bank errors.

To report a trust shortage, contact Trust Assurance (trustaccounting@lsbc.org; 604.697.5810)

For sample letters for reporting trust shortages, see Appendix C of the Trust Accounting Handbook