This form is a sample letter in Word format covering the subject matter of the title of the form.
State Bar Of California Handbook On Client Trust Accounting In Santa Clara
Category:
State:
Multi-State
County:
Santa Clara
Control #:
US-0001LTR
Format:
Word;
Rich Text
Instant download
Description
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FAQ
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.
Recording a document means that it is filed with the county recorder's office and becomes a public record. In California, living trusts are not required to be recorded, nor is it recommended.
The Contact Center is closed on State Bar holidays. To speak with a representative, please call 800-843-9053 if you are in California. If you are calling from out-of-state, please call 415-538-2000.
Per California probate code section 16063, an accounting should include the following information for the last fiscal year of the trust or the time since a trustee last prepared and provided an accounting: A statement of all receipts and disbursements of principal and income. A statement of assets and liabilities.
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.
To calculate your adjusted end balance, add any uncleared deposits and subtract any uncleared disbursements from the total given by the bank statement. This adjusted end balance should then match the month-end balance in your trust accounting records, making your trust account reconciliation a success.
Trustees must maintain separate accounts for each trust, with each client's funds handled individually. Detailed Record-Keeping: Every financial transaction involving the trust must be meticulously recorded. This includes deposits, disbursements, interest income, investment gains, and expenses.
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.
