ARTICLE · 03 JULY 2024

Client Guide To Trust Accounts

Casey & Moss LLP

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When you retain a lawyer, you will often hear the terms "Trust Account" or "In Trust", but what exactly does that mean?

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Emilia Szczepkowski

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When you retain a lawyer, you will often hear the terms "Trust Account" or "In Trust", but what exactly does that mean? A trust account is a specialized bank account that lawyers use to hold funds received on behalf of a client or a third party in a regulated matter. As stated on the Law Society of Ontario website, the most common type of trust account is a mixed trust account which pools money for multiple clients. Any interest earned is remitted to the Law Foundation of Ontario.

As for the term "In Trust", this specifies that the funds are meant for this account.

Why Does a Lawyer Have a Trust Account?

Lawyers have trust accounts to manage client funds responsibly and safely, as part of their fiduciary duty. These accounts ensure the protection and safekeeping of client funds.

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