Reporting a Trust Shortage

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 a lawyer cannot deliver up, when due, any trust funds held, Rule 3-74 requires the lawyer to immediately report the shortage to the Law Society.  In your report, please ensure to include:

• the amount of the shortage
• the date the shortage occurred
• the date the shortage was identified
• the date the shortage was eliminated
• the circumstances that lead to the shortage
• the steps taken to eliminate the shortage

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