Trust account is defined as what?

• A. A regular operating account for the firm
• B. A personal account of the attorney
• C. A joint account with a client
• D. A bank account maintained by a law firm for the deposit of client funds, which must be kept strictly separate from the firm's operating funds

Answer: (D)

A trust account is a bank account set up by a law firm to hold funds that belong to clients, not the firm. The attorney acts as a fiduciary, keeping those funds separate from the firm's operating money. This separation protects client property, ensures proper accounting, and complies with ethical rules. Regular operating accounts are for the firm’s money to cover expenses, while personal accounts are the attorney’s own funds. A joint account with a client isn’t how trust money is handled, since trust funds must be kept in a dedicated trust account and not commingled with the firm’s funds. So the trust account is the bank account maintained by a law firm for the deposit of client funds, kept strictly separate from the firm’s operating funds.