The Trust Assurance Program is funded through the collection of the trust administration fee (TAF).
Lawyers must remit a $15 TAF for each distinct client matter with trust funds, unless the trust funds are solely for the purpose of paying legal fees or held as a retainer for legal fees. Lawyers may treat TAF as a disbursement and pass the cost to the client or alternatively absorb the cost as a firm expense. The TAF becomes a firm liability in the reporting period that funds are received into trust and due in the corresponding quarter. The remittance of the TAF is not related to a firm’s billing cycle.
Under Rule 2-110, TAF payments must be remitted to the Law Society quarterly and within 30 days of the quarter end, as follows:
- April 30 for the period January 1 to March 31
- July 31 for the period April 1 to June 30
- October 31 for the period July 1 to September 30
- January 31 for the period October 1 to December 31
Under Rule 2-111, a late fee of 5% applies to all late remittances.