A client trust account is a special bank account lawyers use to hold money that belongs to clients or third parties, not the lawyer. The basic idea is separation. Money that is not yet earned or not yet ready to be distributed should not be mixed with the lawyer’s regular business funds.
Why Trust Accounts Exist
Trust accounts help protect client funds. If a lawyer receives settlement money, an advance fee, or money that must be held while a dispute is resolved, the account creates a separate place for that money until the correct distribution is made.
Settlement Money Example
Suppose a personal injury case settles. The settlement check may go to the lawyer first. The lawyer may deposit it, wait for funds to clear, deduct authorized fees and costs, resolve liens, and then send the client the remaining amount. The trust account is part of that flow.
Retainers and Advance Fees
Some retainers or advance fees may also involve trust accounting issues, depending on the agreement and the nature of the payment. The key question is whether the money already belongs to the lawyer or is still being held for future work or distribution.
Disputed Funds
If the lawyer and client disagree about fees, disputed money may need to be held while the disagreement is addressed. That can be frustrating, but holding disputed money is different from taking it.
Why Clients Should Care
Clients do not need to become banking experts. But they should understand that client money has to be tracked. If a lawyer cannot explain what happened to funds held in trust, that is a serious problem.
For related topics, read What Is an IOLTA Account?, Do Lawyers Have to Show You Where Your Money Went?, and What to Do If You Think Your Lawyer Mishandled Money.
This article is general legal information about West Virginia law and procedure. It is not legal advice. If you need advice about your specific facts, talk to a licensed West Virginia lawyer.