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Protect Client Trust Funds

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In Clio Manage, you can protect client trust funds to set aside a specific amount for a future purpose, such as counsel fees, undertakings, expenses, or future invoices. Protected funds sit apart from the available matter trust balance and stay reserved for the purpose you set, which supports firms that work under strict trust accounting regulations. Your firm keeps clear control over how client money is used.

Note: Turning on the protected funds setting requires the Billing settings permission. Once it is on, users with Accounts permissions can add, edit, or delete protected funds and apply them to invoices. Other firm users can view protected funds, make edits, and send release requests to users with Accounts permissions. Learn more about Roles and Permissions in Clio Manage.

Enable the protected funds setting

A user with the Billing settings permission turns on the protected funds setting before anyone at the firm protects client funds.

Note: In the old Clio experience, go to Settings > Billing > Protected funds.

  1. Open the user menu and select Manage settings.
  2. Go to Invoicing > Protected funds.
  3. On the Protected funds card, turn on the toggle.
    • All users at the firm will need to refresh their browser to apply the change.

 

Manage protected funds

Users with Accounts permissions add, edit, and delete protected funds from the matter Dashboard subtab. They apply protected funds to an invoice from the main Invoices tab or the Invoices subtab in a contact or matter. The matter Timeline records each added or deleted protected fund and each amount change, with the user, date, and time.

Note: You can protect funds when the client has available trust funds. To add trust funds, create a trust request and record a payment on it.

Add protected funds to a matter

  1. Go to a matter.
  2. In the Dashboard subtab, go to the Financial widget.
  3. In the Matter trust funds box, click ... and select Manage protected funds.
  4. If applicable: If your firm holds trust funds in more than one trust account, select the relevant trust account in the Bank account field.
  5. Enter the Amount to protect.
  6. Enter a Fund name for future reference.
  7. Click Add.

The protected amount comes off the available trust funds on the matter. To review the protected funds, click ... in the Matter trust funds box and select View protected funds breakdown.

Tip: Name each protected fund for its purpose, such as a settlement holdback, so everyone at the firm knows why the funds are reserved.

 

Edit protected funds

  1. Go to a matter.
  2. In the Dashboard subtab, go to the Financial widget.
  3. In the Matter trust funds box, click ... and select View protected funds breakdown.
  4. Click Edit (pencil icon) next to the protected fund.
  5. Change the amount, fund name, or reason.
  6. Click Save changes.

Note: The trust account selected when you first protected the funds is fixed. To use a different account, delete the protected funds and recreate them with the correct account.

 

Delete protected funds

Important: Deleting protected funds removes the protection and returns the amount to the available matter trust balance. The funds stay on the matter.

  1. Go to a matter.
  2. In the Dashboard subtab, go to the Financial widget.
  3. In the Matter trust funds box, click ... and select View protected funds breakdown.
  4. Click Delete (bin icon) next to the protected fund.
  5. Click Delete to confirm.

 

Apply protected funds to invoices

  1. Go to the main Invoices tab or the Invoices subtab in a contact or matter.
  2. Find the invoice to pay. To narrow the list, use the quick filters or the keyword search box.
  3. Click the down arrow next to Send, and then select Apply protected funds.
  4. In the Destination account field, select the account that receives the protected funds.
  5. Select the protected fund to pay the invoice. A client with one protected fund has it preselected.
  6. Select the Payment type, and enter a Reference.
  7. Click Apply funds.

 

Work with protected funds

Users without Accounts permissions can view all protected funds for a matter, edit the reason for a protected fund, and increase its amount. The matter Timeline records each amount change and each release request, with the user, date, and time. To release protected funds back to the trust account or to pay an invoice, send a request to users with Accounts permissions. Each of those users receives an email notification for the request.

View protected funds

  1. Go to a matter.
  2. In the Dashboard subtab, go to the Financial widget.
  3. In the Matter trust funds box, click ... and select View protected funds breakdown to open all protected funds for the matter.

 

Edit the protected amount and reason

  1. Go to a matter.
  2. In the Dashboard subtab, go to the Financial widget.
  3. In the Matter trust funds box, click ... and select View protected funds breakdown.
  4. Click Edit (pencil icon) next to the protected fund.
  5. Increase the amount or change the reason.
  6. Click Save changes.

 

Send request to release protected funds

  1. Go to a matter.
  2. In the Dashboard subtab, go to the Financial widget.
  3. In the Matter trust funds box, click ... and select View protected funds breakdown.
  4. Click Request fund release.
  5. Select the protected fund, and then enter the Amount to release.
  6. Under Reason, select Release back to the trust or Pay an invoice. For Pay an invoice, also select the Invoice to pay.
  7. Optional: Enter a Memo with more details about the release request.
  8. Click Request fund release.

 

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