Disbursing a settlement involves the firm's trust account, liens, costs, fees and the client's share. Counsel controls every step and the professional rules govern trust accounting. Staff keep the checklist and the paperwork.
The usual order
- Confirm the settlement funds have cleared in the trust account.
- Get final payoff amounts in writing for every lien.
- Finalize the cost ledger, with receipts.
- Prepare the closing statement for counsel and the client to review and sign.
- Pay liens and costs, then the client and fees, as the closing statement shows.
- Keep copies of every check, payoff letter and signed statement.
Communicate
Clients wait anxiously for settlement money. A short note at each step prevents worried calls.
Our disbursement checklist walks through each step.
Litigation support is performed at the direction of a licensed attorney.
This article is general information, not legal, tax or regulatory advice. Rules change; confirm current requirements with the responsible agency or a licensed professional.
