Manitoba law firm obligations: trust accounts, interest and PIPEDA

This article is for law firms in Manitoba. The Law Society of Manitoba and the Manitoba Law Foundation govern trust accounts; interest on pooled accounts is remitted to the Foundation. The private sector is subject to PIPEDA. Here are the obligations and how PragmaLegal helps.

1. Law Society of Manitoba and trust accounts

Interest on pooled trust accounts belongs to the Manitoba Law Foundation (since 1986, Legal Profession Act). Whenever you open a new trust account, you must provide a signed Letter of Direction to your financial institution and copies to the Law Society and the Manitoba Law Foundation so that interest (minus fees) is remitted to the Foundation. Interest-bearing accounts for a single client are handled according to Law Society procedures (daily interest, term deposits/GICs).

2. Privacy: PIPEDA

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

3. Billing: GST and PST in Manitoba

Taxable legal services are subject to GST (5%) and Manitoba PST (7%). Software that calculates tax and produces reports simplifies compliance.

4. How PragmaLegal helps Manitoba lawyers

PragmaLegal lets you:

• Maintain trust registers (journal, client balances) and facilitate traceability for audits.
• Centralize files and personal data (PIPEDA compliance).
• Bill GST and PST correctly with reports for CRA and Manitoba Finance.