What is a law practice required to do to be entitled to withdraw trust money for legal costs?

A law practice may withdraw trust money for legal costs pursuant to one of the 2 procedures set out in subsections 58(3) and 58(4) of Legal Profession Regulation 2007 (LPR).

Subsection 58(3) only applies if a law practice has a costs agreement that authorises the withdrawal, OR the law practice has received instructions that authorise the withdrawal, OR the law practice is owed the money by the person by way of reimbursement of money already paid on behalf of the person.

In any of these 3 situations, a law practice may withdraw trust money for legal costs if the law practice, before withdrawing trust money, sends to the person whose money is to be withdrawn, a request for payment (section 58(3)(b)(i) of the LPR) referring to the proposed withdrawal, OR a written notice of withdrawal (section 58(3)(b)(ii) of the LPR).

Subsection 58(4) provides that a law practice may withdraw trust money for legal costs if a bill has been given to the person whose money is to be withdrawn and the person has not objected, within 7 days after being given the bill, to the withdrawal of the money.