Simple English definitions for legal terms
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A client trust account is a special bank account that a lawyer uses to hold money that belongs to their clients. This could be money received from a settlement or money that the client has given to the lawyer for a future business transaction. The account usually earns interest and is separate from the lawyer's own personal account.
A client trust account is a type of bank account that a lawyer uses to hold money that belongs to their clients. This account is usually interest-bearing, which means that the money in the account earns interest over time. The lawyer is responsible for managing the account and ensuring that the money is used only for the client's benefit.
For example, if a lawyer settles a case on behalf of their client and receives a settlement payment, they would deposit that money into the client trust account. The lawyer would then use that money to pay any outstanding bills or fees related to the case, and then distribute the remaining funds to the client.
Another example would be if a client gives their lawyer money to hold onto for a future business transaction. The lawyer would deposit that money into the client trust account and hold onto it until it is needed for the transaction.
These examples illustrate how a client trust account works to protect the client's money and ensure that it is used only for their benefit. By using a separate account, the lawyer can keep track of the client's funds and avoid any potential conflicts of interest.