This form is a sample letter in Word format covering the subject matter of the title of the form.
State Bar Of California Handbook On Client Trust Accounting In Orange
Category:
State:
Multi-State
County:
Orange
Control #:
US-0001LTR
Format:
Word;
Rich Text
Instant download
Description
Form popularity
FAQ
For trust accounts, the check can be payable to the custodian, the trustee, or the name of the trust account — but it must appear exactly as it's registered on the account. Any deviation will cause the check to be returned.
How do you write a check to a lawyer? If the check is made out to both the client and the law firm, you need both signatures. On the check, write the case number, client name and case description. (This is good risk management if you ever need to re-create your trust accounting records.)
California law requires attorneys who handle client funds or funds entrusted by others to hold them in one or more interest-bearing bank accounts labeled as a "Trust Account," or words of similar import.
SCR .15(f) requires trust account checks to be pre-printed and pre-numbered. The rule further specifies that the name and address of the lawyer or law firm and the name of the account must be printed in the upper left corner of the check.
Writing a check is acting for the trust, and any trustee should be able to do so. Of course, the person creating a trust could change this standard and require that all trustees always act together.
You must keep a written record showing that every month you completed a three-way reconciliation where you “reconciled” or balanced the account journal against the individual ledgers and the bank statement with canceled checks. You must perform this three-way reconciliation for each client trust account you keep.
Endorse the check by signing your name and indicating that you are the trustee of the trust.
Per California probate code section 16063, an accounting should include the following information for the last fiscal year of the trust or the time since a trustee last prepared and provided an accounting: A statement of all receipts and disbursements of principal and income. A statement of assets and liabilities.
Recording a document means that it is filed with the county recorder's office and becomes a public record. In California, living trusts are not required to be recorded, nor is it recommended.
