what is a trust account and how does it work?
I have some one in family member that is a trustee, Went father died. And land came on sale and it was sold, but the trustee is one of the family member holding the fund by is trust account, for him to hold it for longtime before it spit to the other family member. Can he hold it out for a longtime with out giving it to the rest of the family. yes or no thank you from Loretta
A trust account is, generally speaking, an account that is held by a trustee on behalf of a beneficiary. Specifically, attorneys hold client funds on behalf of clients. When an attorney earns fees, the attorney, after the client reviews and approves the attorney's bill, transfers client funds from the trust account to the attorney's general account as fee payment of fees.
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Estate Planning Attorney
A trust account in its broadest sense is not necessarily handled by an attorney. Numerous independent trust companies and banks have trust departments that hold assets in trust for beneficiaries. How the accounts work depend greatly on the documents that create the account. For example a trust account that is for a trust containing the term "My wayward son Johnny only has access to this money for issues concerning his health, education, maintenance and support. The trustee has full authory to independently determine the validity of any of Johnny's requests" is not likely to work by giving Johnny a debit card on the trust account.
Rules about how attorney trust accounts work are found in the Rules of Professional Conduct 1.15 a and 1.15b. See the attached links for a full description.
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