Nova Scotia law firm obligations: trust accounts (Part 10), PIPEDA and HST

This article is for law firms in Nova Scotia.The Nova Scotia Barristers' Society governs trust accounts (Part 10 of the Regulations). Society permission is required before operating a trust account. The private sector is subject to PIPEDA; HST applies. Here are the obligations and how PragmaLegal helps.

1. Nova Scotia Barristers' Society and Part 10 (trust accounts)

You must obtain Society authorizationbefore operating a trust account: Lawyer's Certification, written arrangements with the financial institution (Section 30 of the Act), and possibly the online Trust Account Assessment. Lawyers who have not operated a trust account (or not in the last 3 years) must complete the Assessment before becoming signatories. Account types: general account (multiple clients) or specific accounts (one client). Funds held in a representative capacity (executor, administrator, etc.) must go into a separate trustee account. You must maintain proper records, comply with withdrawal requirements and submit to audits.

2. Privacy: PIPEDA

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

3. Billing: HST in N.S.

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

4. How PragmaLegal helps Nova Scotia lawyers

PragmaLegal lets you:

• Maintain trust registers that comply with Part 10 and facilitate Society audits.
• Centralize files and personal data (PIPEDA compliance).
• Bill HST correctly with reports for the CRA.