Legal Question in Wills and Trusts in Alabama
My father-in-law died unexpectedly leaving an undisclosed amount of money in a bank account. My sister-in-law is a lawyer and is handling probating his estate. She sent us a letter explaining that she will be filing with the bank to have the funds placed in her firm trust account. From this account, some small bills left by my father-in-law will be paid. She will send receipts for those bills to the remaining siblings.
My question is, what does "my firm trust account" mean? Can the remaining siblings have access to the account transaction information? Does this give her sole control over this money?
1 Answer from Attorneys
A "firm's trust account" is where attorney's are required to keep funds that come into their possession that are not theirs, either yet, or at all. For example, when an attorney charges a portion of their fee upfront, that portion of the fee not yet earned must be kept in the attorney's trust account. The attorney can not remove those funds until they have earned them. Likewise, sometimes funds coming to the attorney for a client for personal injury settlements or even funds from estates, might be kept in the attorney's trust account until ready for disbursement. An attorney may not co-mingle their personal funds with the trust account funds.
Rules promulgated by the Alabama Bar Association, govern the handling of attorney's trust accounts. Typically, you will not have access to the records of this account. However, your attorney, as a fiduciary, should, upon your request and in a reasonable time, provide you an accounting of any funds received for this estate, used for this estate, and what remains and any supporting documentation you request. -Dean.
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