Trust Account Tips

Trust Account Tips

When depositing funds to the trust account:

1. Check to make sure that the deposit slip that you're using is for the correct account.

2. Ledger the deposit on the corresponding individual client ledger(s).

3. Ledger the deposit on the general trust account ledger/check register.

4. Complete the duplicate deposit slip, identifying the corresponding client(s) whose funds are involved. If not using a duplicate deposit slip, complete a deposit log or some other documentation to identify the date of deposit, the amount and the corresponding client.

5. Make the deposit and retain the bank receipt. Check with the teller to determine if a deposit hold is going to be placed and, if so, for how long.

When disbursing funds from the trust account:

1. Check the individual client ledger(s) for whom you are drawing the disbursement for to ensure that the trust account has sufficient balance to cover the disbursement.

2. Confirm that the funds that you're disbursing against are collected in the trust account?

Did you verify that the offsetting funds have been credited to the trust account?

Did you verify with your bank that any deposit holds have been released?

Did you check with the bank that the deposited check is drawn on to ensure that it has paid the check?

3. If the funds are uncollected, follow "Checklist for Disbursing Against Uncollected Funds."

4. Ledger the disbursement on the individual client ledger(s). Be sure to total the transaction and create a new ending balance on the client ledger.

5. Ledger the disbursement on the general trust account ledger/check register. Again, be sure to total the transaction and create a new ending balance on the register.

6. Draw the check and identify the corresponding client(s) in the memo portion of the check.

7. If conducting a wire or electronic transfer, ensure that the transaction is clearly identified on the corresponding client ledger(s) and on the trust account general ledger/check register. Double-check account numbers for accuracy!

For more information about Trust accounts, contact the Bar's Trust Account hotline at 602.340.7305 or the Law Office Management Assistance program at 602.340.7313. Remember, this is simply a tool to assist the lawyer in the proper trust account usage, however, lawyers should ALWAYS refer to Rules 42, ER1.15 and 43, Ariz. R. Sup. Ct, for complete instruction when conducting trust account transactions.