Episode 4 - Escrow Part 2: Common Misconceptions and Misuse of Escrow Accounts

Legal Ethics in a New York Minute

Welcome to the fourth episode of Legal Ethics in a New York minute with host Kaylin Whittingham. Your Legal Ethics briefing where you’ll hear tips to stay on track and traps to avoid. In this episode, Kaylin dispels some common misconceptions about escrow accounts, clearing up what is and isn't misuse of an escrow account. Kaylin delves into some practices that you may be surprised to learn could lead to you being disciplined. In this episode Kaylin also tells us why you should not hide third party funds from creditors in escrow, why disputed funds must be held in escrow and why mistakenly over dispersing funds is still misappropriation . Also included, a couple of interesting cases wherein one attorney was disbarred for misuse of an escrow account. Join in on the discussion with Kaylin and suggest some topics you'd like to hear discussed.

This is a Seasonal Podcast with each Season having eight episodes that are released in two parts–four episodes each and offer tons of tips and nuggets from Kaylin's years of experience working in Legal Ethics and Professional Responsibility. Kaylin was named Super Lawyer for Professional Liability in the New York Metro Area 2022 and Lawyer of Distinction 2022. In 2020, she was named in the Top 100 National Black Lawyers. She is the recipient of the 2018 National Bar Association Presidential Award; 2017 Association of Black Women Attorneys Achievement Award; and 2016 Black Women of Influence (BWOI) Trailblazer Award. Kaylin is featured in the Book and World Exhibit—"200 Women: Who Will Change the Way You See The World.” Guided by her mantra: "Inspire. Empower. Engage."—Kaylin advocates for women's rights, immigrants, victims of domestic violence, and the mentally ill.

0:00 - Intro

0:48 - Misuse of escrow account

1:21 - Promptly moving legal fees from escrow

2:41 - Do not hide third party funds in escrow account from creditors

3:39 - Disputed funds must be held in escrow account until resolution

5:04 - Mistakenly over dispersing funds is still misappropriation

5:50 - Dishonored checks and misappropriation

6:49 - Repayment of misappropriated funds is still a violation

7:22 - Case examples

8:57 - Outro

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