California law requires attorneys who handle client funds or funds entrusted by others to hold them in one or more interest-bearing bank accounts labeled as a "Trust Account," or words of similar import.

To prepare an accurate trust accounting, you must keep an inventory of trust property, and copies of all account statements, invoices, and receipts. Trustees should keep records organized and utilize financial software to better track expenses and investments. Trust accounting is usually required annually for a trust.

Per California probate code sections 16060 and 16062, trustees must: Keep beneficiaries 'reasonably' informed about how they manage the trust. Provide an accounting at least once annually. Provide an accounting at the termination of a trust or when a trustee changes.

You must keep a written record showing that every month you completed a three-way reconciliation where you “reconciled” or balanced the account journal against the individual ledgers and the bank statement with canceled checks. You must perform this three-way reconciliation for each client trust account you keep.

Rule 4.1 Truthfulness in Statements to Others (b) fail to disclose a material fact to a third person when disclosure is necessary to avoid assisting a criminal or fraudulent act by a client, unless disclosure is prohibited by Business and Professions Code section 6068, subdivision (e)(1) or rule 1.6.

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The trust accounting handbook is a practical guide created to assist attorneys to comply with recordkeeping standards for client trust accounts. When the State Bar asks you how much money you're holding for the client or what you've done with it while you've had it, you must report it to the State Bar.This Ethics Spotlight highlights attorney obligations with respect to client trust accounts in light of recent concerns with respect to bank stability. This handbook provides essential guidelines on client trust accounting for California attorneys. A lawyer shall hold trust property separate from the lawyer's own property. (1) Trust funds shall be held in a trust account. Matthew Bender Practice Guide: California Trust Litigation is the definitive source of information on litigating trust disputes in California. Assists lawyers, bar organizations and others who work with older clients and their families. The ABA is the largest voluntary association of lawyers in the world. Partition Specialists.

State Bar Of California Handbook On Client Trust Accounting In Massachusetts

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