As a lawyer, your workload can often be heavy, but it’s impossible to always be at the office. Perhaps you are going on your dream vacation, or maybe you will be away for business, medical or family reasons.

If you operate a trust account and anticipate a brief, scheduled absence from the office, you need to make arrangements for any trust account transactions that may occur during your absence. One way to handle this is by granting temporary signing authority to another lawyer.

This resource will help you understand how to safely and effectively use temporary signing authority during a short-term absence from your practice.

What is temporary signing authority?

Rule 119.27(3) of the Rules of the Law Society of Alberta allows a Responsible Lawyer to seek approval to provide temporary signing authority to a lawyer from a different law firm. While you are away, this lawyer can temporarily approve withdrawals and transfers of trust money from your trust account. This allows you to maintain business continuity and prevent disruptions to your clients’ files while safeguarding your trust account management.

When is it appropriate to use temporary signing authority?

Temporary assigning authority provides you with coverage during brief, planned absences from the office. You can arrange for temporary assigning authority when:

• there is no other lawyer at your firm who can provide coverage;
• your absence is clearly defined in duration; and
• authority is granted only for the required period.

Typical situations include vacations, scheduled medical leaves, short-term personal or family leaves, or other short-term absences.

Temporary signing authority is not designed for ongoing or permanent use. It is a stopgap measure, not a lasting solution. Using temporary signing authority indefinitely can create risks for you and your clients, as accountability declines while the possibility of errors, misuse and fraud increases.

If you need a more permanent solution, there are options like designating a secondary Responsible Lawyer or developing a comprehensive business continuity and succession plan if you frequently require coverage.

What are the requirements for temporary signing authority?

Approval from the Law Society is mandatory. Rule 119.27(3) outlines what is required:

• Only lawyers from other firms can receive temporary signing authority.
• Their role is strictly confined to withdrawals and transfers from your trust account.
• You must document Law Society approval and include it with your monthly trust account reconciliation.

Under Rule 119.27(4), after the temporary signing authority expires, you need to terminate the other lawyer’s access to your trust account.

Additional Guidance

Temporary signing authority is a useful tool for preserving business continuity during planned, short-term absences from the office. If you would like more guidance on temporary signing authority, or you would like to discuss business continuity and succession planning, contact the Practice Advisors.