How long can money be held in a trust account? The account is from a PI settlement.

Asked almost 2 years ago - Washington, DC

The account is from a PI settlement.

Attorney answers (5)

  1. Christian K. Lassen II

    Pro

    Contributor Level 20

    7

    Lawyers agree

    Answered . If you are asking about how long it will stay in your attorney's trust account before you get your money, it should stay there until it clears. If the check was out of state, the lawyer may hold it for a month so it doesn't bounce.

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  2. William J Lasko

    Contributor Level 13

    5

    Lawyers agree

    Answered . It depends on why the trust account was set up and the terms and conditions of settlement. Generally, before funds can be released, certain settlement agreements may have to be signed off on. Further, if the person that is entitled to the settlement is a minor child, there may be a trust requirement. More information is needed. You might want to contact an attorney to further discuss the matter.

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  3. Mark William Oakley

    Contributor Level 18

    5

    Lawyers agree

    Answered . It varies with every case. Talk to your lawyer about the reasons for any delay. Federal law requires checks drawn on an out-of-state bank be cleared by the depositing bank within 10 business days of deposit; in-state bank checks must be cleared by 5 business days after deposit. The lawyer in a PI settlement should promptly disburse all funds which have been determined to be immediately available to disburse. That can sometimes be a trickier time frame than you realize, depending how many liens against the proceeds there may be, and in what amounts. In many cases, there are unpaid medical bills which the lawyer is obligated to pay (or negotiate down), plus liens from your health insurance carrier. If you are a medicaid or Medicare recipient, it could take 6 months or more to resolve their lien. Generally speaking, however, and in the absence of some extraordinary circumstances regarding liens or a scenario where your settlement amount is too small to cover all your liens and still leave you with a reasonable net recovery, then 14 days following receipt and deposit of the settlement funds is reasonable. But many factors can cause a delay. Call your lawyer and discuss the matter.

  4. Robert Bruce Kopelson

    Contributor Level 20

    5

    Lawyers agree

    Answered . No set requirement. Often there are liens and claims that must be negotiated before a final accounting can be prepared and funds distributed. This can take a long time fighting/negotiating, or just to get it worked out depending on who is involved. medicare can be very slow for example. Contact you lawyer and see them for an explanation of status and time estimate for resolution and distribution.

  5. Timothy Leo Bowden

    Contributor Level 14

    4

    Lawyers agree

    Answered . until all liens and subrogated interests have been resolved. sometimes that can take months unfortunately.

Related Topics

Personal injury

If you suffer a personal injury as the result of the actions or negligence of another, you may seek financial compensation for physical or emotional damages.

Personal injury settlement

Personal injury settlements are agreements made between the two parties of an injury lawsuit. They outline the compensation that an injured party receives.

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