Where the client/owner can no longer be traced or the funds are considered to be abandoned
Businesses and other organisations intending to remit client cash balances to the KLTR must do so by cheque, payable to "King's and Lord Treasurer's Remembrancer".
Where the client was an individual, or a group of individuals (e.g. trustees), that cheque must be accompanied by the following completed form before the KLTR will be prepared to accept the funds:
Funds held for a company which is dissolved are bona vacantia under section 1012 of the Companies Act 2006: in that case, a cheque accompanied by a letter with the company name, company number and date of dissolution should be sufficient.
Where the client/owner is an individual, or a group of individuals, who can no longer be traced
Cash balances held in respect of an individual or group of individuals (e.g. trustees) who cannot be traced are bona vacantia at common law. The KLTR office will accept them if we are satisfied that reasonable efforts have been made to trace the true owner, having regard to the actual amount of money held.
The above form prepared in conjunction with the Law Society of Scotland, sets out the steps you are expected to take to evidence “reasonable endeavours” before the KLTR will accept funds. In the case of practice units regulated by the Law Society of Scotland, the form must be signed on behalf of the practice unit by the Designated Cashroom Manager. Practice units may also wish to refer in particular to paragraph 6.11.5 of Practice Rule B6: Accounts, Accounts Certificates, Professional Practice & Guarantee.
Where funds are considered to be abandoned
The above form also sets out guidelines for cash balances where the balance is now considered to be abandoned.
Again, in the case of practice units regulated by the Law Society of Scotland, the form must be signed on behalf of the practice unit by the Designated Cashroom Manager. Please note, at the moment, we require forms to be scanned and emailed to us. If the Designated Cashroom Partner is unable to sign the form, the otherwise completed form should be emailed to firstname.lastname@example.org by the Designated Cashroom Partner personally.