Valuable Property Records
Maintaining accurate financial records is a crucial responsibility for all licensees under the Law Society of Ontario’s By-Law 9. This article focuses on explaining paragraph 9 of section 18.
Paragraph 9 of Section 18: Managing Non-Monetary Trust Property
Requirement: Every licensee must keep a detailed record of all property, other than money, held in trust for clients. This ensures that all client assets are accounted for and can be traced through accurate record-keeping.
Instructions and Explanations:
Description of Property: The record must include a thorough description of each property held in trust. This helps in identifying the exact nature of the property.
Date of Possession: Record the date on which the licensee took possession of the property. This timestamp is crucial for tracking the property’s custody timeline.
Previous Possessor: Identify the person who had possession of the property immediately before the licensee took possession. This ensures a clear chain of custody.
Value of Property: Record the value of each property held in trust. This financial detail is important for accurate accounting and valuation of trust assets.
Client Identification: Clearly identify the client for whom the property is held in trust. This links the property to the correct client and avoids any confusion.
Disposition Date: Note the date on which possession of the property is transferred out of the licensee’s custody. This helps in tracking the property’s movement.
Recipient of Property: Identify the person to whom the property is given when possession is transferred. This completes the chain of custody.
Example: If a licensee is holding a piece of jewelry in trust for a client, the record should specify that it is a gold necklace, the date it was received, the previous owner, its estimated value, the client’s name, the date it was given away, and the new possessor.
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