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Closing a trust account
This fact sheet sets out the steps to follow when closing a trust account.
Information for practitioners and approved Barrister's clerks.
When closing a trust account, law practices and approved barrister’s clerks must ensure that any funds held in the statutory deposit account (SDA) are transferred into their trust account. The transfer can be made through the Victorian Legal Services Board’s online portal, LSB Online, which is available via the Board’s website. All funds held in the trust account should be disbursed.
The law practice or approved clerk must then contact the bank branch where their trust account is held and arrange to have the trust account closed.
The law practice or approved clerk must notify the Board of the closure of this account by completing the following form:
- Part B of Notification of trust account details.
This form must be signed by a principal of the law practice or approved clerk. The Board will confirm with the bank that the account has been closed. The Board will request the Commonwealth Bank of Australia to close the SDA.
If this was the only trust account held by the law practice or approved clerk and, the law practice or approved clerk is now ceasing to handle trust money (including transit money), other requirements also apply. The principal(s) of the law practice can vary their practising certificate to a ‘Principal without trust authorisation’ through LSB Online.
The External Examiner (EE) for the law practice or barristers’ clerk must complete a final examination of the trust account within 60 days of the account being closed. The following form must be completed by the EE and sent to Practitioner Services of the Victorian Legal Services Board:
- External Examiner’s report when a law practice ceases legal practice or authorisation to receive trust.
Any queries about the final examination should be directed to Practitioner Services of the Victorian Legal Services Board on (03) 9679 8000.
Once the final examination has been completed the EE must complete:
- Part B of External Examiners Form. This form will notify the Board of the termination of the EE’s appointment to the law practice or approved clerk.
This form is to be signed by the principal of the law practice or approved clerk and/or EE. All forms are available on the Board’s website.