Hiring a California estate planning attorney to manage your trust accounts is a common tactic employed by those wanting a professional working on these important accounts. There are three common scenarios in which an attorney will become responsible for a trust account. These include:
- In conjunction with a payment from a settlement.
- To manage the funds that are received at the start of the representation.
- When an attorney serves as fiduciary agent on behalf of a client’s estate or a client.
The money that is put inside a trust account does not belong to the law firm or the attorney. Rather, the attorney holds that money in trust for the client until the time arrives that it is to be distributed. Trust accounting is a term that refers to the bookkeeping of trust accounts in alignment with state requirements.
These requirements will vary from state to state, which is why it is so important to engage the services of a Pasadena estate planning attorney to ensure that your attorney is very familiar with the process and requirements within California.
Trust accounting can help to explain the transactions that have gone in and out of the trust, and to help explain the overall management of the trust. Schedule a consultation today with a Pasadena estate planning attorney to get further information about trusts and trust accounting managed by a law firm.