A fee deposit or advance payment from a client to an attorney for services to be performed in the future remains the property of the client until it is earned by the attorney. Such an unearned fee deposit generally must be held in the attorney’s trust or escrow account and not deposited into the attorney’s operating account or otherwise accessed until the attorney has done the work and earned the fee.

If the client or the attorney terminates the representation at any time, the attorney generally must return the unearned portion of the fee to the client. The terms of the engagement letter or agreement between the attorney and client may impact the attorney's obligation to return unearned fees, and a potential client should read and understand it.

In North Dakota, as in many jurisdictions, an advance payment or retainer fee paid by a client to an attorney for future legal services is considered to remain the client's property until the attorney has actually earned it by providing those services. Consequently, such funds must be deposited into a trust or escrow account, separate from the attorney's personal or operating accounts. This ensures that the client's funds are protected and only used once the attorney has performed the agreed-upon work. If the attorney-client relationship is terminated before the attorney has fully earned the fee, the attorney is typically required to refund the unearned portion to the client. The specific terms of the refund may be governed by the engagement letter or agreement signed by the client when they retain the attorney. It is crucial for clients to thoroughly read and understand the terms of this agreement to know their rights regarding the advance payment.