What should happen to disputed funds while awaiting resolution?

While awaiting resolution of disputed funds, they should remain in the account until the issue is resolved. This is essential to ensure that the funds are preserved and protected until the rightful owner is determined. Keeping the funds in the account prevents either party from acting unilaterally and potentially harming the rights or claims of the other party.

Additionally, this practice aligns with ethical obligations to safeguard client property and maintain a clear record of the dispute. It reflects a responsible approach to handling funds, especially in situations where there is uncertainty regarding ownership or entitlement. The resolution process can include mediation, arbitration, or litigation, and the funds must remain secure during this time, thus protecting the interests of all parties involved.

Using the funds for court costs or distributing them immediately would not be appropriate, as these actions could undermine the integrity of the dispute resolution process and violate ethical standards regarding the handling of clients' funds.