Start using this Workflow
Client Trust Fund Management Checklist
Establish Trust Account Procedures
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
Trust Account Setup and Management
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
Handling Client Funds
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
Record Keeping and Reconciliation
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
Communication and Reporting
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
Auditing and Compliance
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
