53Withdrawing trust money for legal costs

53 Withdrawing trust money for legal costs

(1)  This regulation prescribes, for the purposes of section 252(1)(b) of the Act, the procedure for the withdrawal of trust money held in a general trust account or controlled money account of a law practice for payment of legal costs owing to the practice by the person for whom the trust money was paid into the account.

(2)  The trust money may be withdrawn in accordance with the procedure set out in either subregulation (3) or (4) .

(3)  The law practice may withdraw the trust money if –

(a) the money is withdrawn in accordance with a costs agreement that complies with the legislation under which it is made and that authorises the withdrawal; or

(b) the money is withdrawn in accordance with instructions that have been received by the practice and that authorise the withdrawal; or

(c) the money has been requested by and paid to the law practice for that purpose; or

(d) the money is owed to the practice by way of reimbursement of money already paid by the practice on behalf of the person and, before effecting the withdrawal, the practice gives or sends to the person –

(i) a written request for payment, referring to the proposed withdrawal; or

(ii) a written notice of proposed withdrawal.

(4)  The law practice may withdraw trust money if the practice has given the person a bill, written request for payment or notice of proposed withdrawal relating to the money and –

(a) the person has not objected to withdrawal of the money within 7 days after being given the bill, request or notice; or

(b) the person has objected within 7 days after being given the bill, request or notice but has not applied for a review of the legal costs under the Act within 60 days after being given the bill, request or notice; or

(c) the money otherwise becomes legally payable.

(5)  Instructions mentioned in  –