ETHICS Q & A

Q I am a sole executor and wish to close the deceased's bank account to enable the closing balance to be paid into my firm's client account.

Do the requirements of rule 11 of the Solicitor's Accounts Rules 1998 apply to me?A No.

The deceased is not your client and there is no contractual relationship between you and the bank.

By sending the grant of probate and a signed withdrawal form to the bank, you are requesting a closure of the account to enable you to carry out your legal duty to administer the estate.

This does not amount to operating the account for the purposes of rule 11.

The full accounts rules will apply to the receipt and holding of the money, as controlled trust money, in your client account.

If you become a signatory on the deceased's account for a time (whether before or after the grant of probate), you will be operating the account and will be subject to the limited requirements of rule 11 only - see rule 11, note (iii).

Aide memoireX The Solicitors' Accounts Rules 1998 must be adopted by 1 May.X The new Indemnity Insurance Rules will be effective from 1 September.

Solicitors must have new indemnity insurance in place by that date.X Establishment of Lawyers Directive 98/5/EC will be implemented in England and Wales on 22 May.

Lawyers who are EU nationals established in the UK will have to register with one of the UK Law Societies or Bars.

Lawyers already practising in the UK have until 21 November to apply, unless they wish to take advantage of their new rights under the Directive at an earlier date.

X Question of ethics is compiled by the Law Society's professional ethics guidance team.

Send questions to Austin O'Malley, the Law Society, Ipsley Court, Berrington Close, Redditch B98 0TD; DX 19114 Redditch; tel: 0171 242 1222.