Legal Question in Wills and Trusts in Florida

Re: trust account of attorneys

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

Money held in an attorney's trust account usually does not earn any interest for the attorney. Based on the difficulty in determining the amount of interest earned by individual clients on monies held in a trust account, most attorneys participate in the Florida Bar Foundation's Interest on Trust Account program (IOTA) wherein the interest is given to the Foundation which funds legal service programs for the poor in the State of Florida. If there is a substantial sum of money, many attorneys will open a separate account just for these monies and pay it to the client or clients.

Generally, an attorney will try to have all tax returns filed before closing an estate. If not, holding back a reasonable sum would be prudent in case any monies might be assessed by the IRS.

Scott R. Jay, Esq.