Attorneys routinely receive funds to be held in trust or escrow for future use.
If these funds are large in amount or are to be held for a long period of time, the attorney deposits the funds in a separate interest-bearing account in the name of and for the benefit of the individual client. Such funds remain idle until disbursed. The confidential, fiduciary relationship between you and your clients remains unchanged, and there are no new records to keep. Just as in the past, the decision of whether client funds are nominal in amount or are to be held for a short period of time will rest in the sound judgment of each lawyer. When client funds are large enough or when the time of deposit is long enough to justify the costs of opening, closing and administering a separate interest-bearing account, lawyers should continue to establish individual accounts for the benefit of those clients.