Unclaimed Client Funds
Unclaimed client funds are sums of money which lie dormant in client accounts of many solicitors and accountants, for years. It’s often the case that the rightful owner cannot be traced, a company has closed, or they have failed to provide instructions on how the funds should be dealt with.
Attempts will have been made to repay the funds, but cheques might not have been cashed or not received if they have moved away.
Unclaimed client account balances cannot be used for any other purpose, so they can be a burden on annual audited accounts. If your business holds funds in dormant accounts, then we would be delighted to receive them to help us support the children, young people and their families that need us.
We can provide a suitable indemnity for individual client amounts exceeding £500.
For more information contact a member of our fundraising team at [email protected]
England & Wales (ICAEW) regulations** allow practices to donate unclaimed client funds to charities.
*SRA rules – Where the rightful owner cannot be traced, rules 20.1 and 20.2 of the Solicitors’ Accounts Rules permit balances under £500 to be paid to charity without SRA permission, providing certain safeguards are met. Amounts over £500 can also be paid to charity, providing SRA permission is granted and YCC can provide an indemnity letter for this purpose.
**ICAEW regulations – The client must have remained untraced for five years. For sums of £10,000 and above (per client), YCC can provide an indemnity for the sum provided.
“We are delighted to support YCC by donating our unclaimed or residual client funds. As well as helping to fund their work supporting disadvantaged children, young people, and their families we are also meeting our own business needs. It’s really simple to do and risk free as YCC provides us with an indemnity that they will repay the funds should the rightful owner come forward.” Dave Wood BSC (HONS) MRIC. Managing Director, Boultons Estate Agents.