Workflow Templates: Client Trust Fund Management Checklist

Understand and comply with state laws and ethical rules regarding trust accounts

Designate a responsible attorney to oversee trust account management

Document and implement standard operating procedures for handling client funds

Open a separate, interest-bearing trust account for client funds in a state-approved financial institution

Ensure the trust account is properly titled to distinguish it from the law firm’s operating and personal accounts

Keep detailed records of all client funds received, including date, amount, source, and purpose

Deposit client funds into the trust account promptly upon receipt

Never commingle client funds with the law firm’s operating or personal funds

Disburse funds only when they are fully cleared and available in the trust account

Maintain accurate and complete records of all transactions involving the trust account

Perform regular reconciliations of the trust account at least monthly to ensure accuracy

Retain trust account records for the required period as mandated by state law or ethical rules

Provide clients with detailed statements or invoices showing the receipt, disbursement, and balance of their funds

Inform clients promptly of any significant transactions involving their funds

Report trust account activity to the appropriate regulatory body as required

Conduct internal audits of the trust account periodically to ensure compliance with procedures

Prepare for and cooperate with any external audits by regulatory agencies

Address and rectify any discrepancies or issues identified during audits immediately

Client Trust Fund Management Checklist