Attorney Trust Account

Definition: An Attorney Trust Account is a special bank account used by lawyers to hold funds belonging to clients or third parties, separate from the attorney’s own money. These accounts are typically used to manage retainers, settlement proceeds, or other client-related funds. The purpose is to safeguard client assets and maintain strict ethical and financial accountability as required by professional conduct rules.

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Attorney Trust Accounts in Florida

An attorney trust account is a segregated bank account where Florida attorneys hold client and third-party funds separate from their own operating funds. Florida Bar Rule 5-1.1 imposes strict requirements on trust account management.

Requirements

Florida attorneys must deposit all client funds into a trust account at a Florida-approved financial institution, maintain detailed transaction records, perform monthly three-way reconciliations (bank statement, trust ledger, individual client ledgers), and disburse funds promptly when due. Commingling client funds with attorney funds is a serious ethical violation.

IOTA Program

Nominal or short-term client funds are held in IOTA (Interest on Trust Accounts) accounts, with interest remitted to The Florida Bar Foundation for legal aid funding. Larger amounts or funds held for extended periods must be placed in separate interest-bearing accounts with interest credited to the client. This program funds access to justice while ensuring proper stewardship of client funds.

Related Terms

Barnes Walker

Barnes Walker maintains strict trust account compliance for all client transactions. Contact us for representation.

Florida Law Reference

Fla. Stat. Ch. 736 (Florida Trust Code)

The Florida Trust Code governs the creation, modification, and administration of trusts, including trustee duties, beneficiary rights, and trust termination.

Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC

Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney-client relationship with Barnes Walker, Goethe, Shea & Robinson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.

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