Prince Edward Island law firm obligations: trust accounts, Form 17 and PIPEDA

This article is for law firms in Prince Edward Island.The Law Society of PEI governs trust accounts; new firms must file an accountant's report, and all lawyers an annual detailed report (Form 17). The private sector is subject to PIPEDA; HST applies. Here are the obligations and how PragmaLegal helps.

1. Law Society of PEI and trust accounts

Lawyers hold client funds in trust for real estate, estates and settlements. New firms must file a report from an accountant demonstrating they have established a compliant trust accounting and record-keeping system. Annually, all lawyers must submit a detailed report (Form 17) confirming compliance with the Society's trust account requirements. The Law Society engages CPAs to review each firm's trust accounting records and procedures annually (a pioneering program in Canada). Unclaimed funds (client not located after 2 years) may be submitted to the Law Society (Form 19); clients have 10 years to claim them, after which funds transfer to the Law Foundation of PEI.

2. Privacy: PIPEDA

In P.E.I., the private sector is subject to PIPEDA. Centralizing data in a secure environment with an audit trail supports compliance.

3. Billing: HST in P.E.I.

Taxable legal services are subject to HST (15%). Integrated software simplifies calculation and reporting.

4. How PragmaLegal helps P.E.I. lawyers

PragmaLegal lets you:

• Maintain trust registers for the annual report (Form 17) and facilitate accountant review.
• Centralize files and personal data (PIPEDA compliance).
• Bill HST correctly with reports for the CRA.