Legal Question in Wills and Trusts in New Mexico

Money being held in Escrow

My mother won a 1.25 million dollar settlement after being struck by a car. The lawyers put $500,000. of that into an escrow account to repay Medicare for bills Medicare had already paid. When we asked who gets the interest off that $500,000. (that had been in their escrow account since Dec. 2005), they said we wouldn't get it, that under New Mexico state law it will go to poor people who need lawyers. My question is this: Since it is my mother's money being held in escrow for her until Medicare has been satisified, shouldn't she get the interest on her money, not the poor people of New Mexico.


Asked on 10/10/05, 8:59 pm

1 Answer from Attorneys
Charles Aspinwall Charles S. Aspinwall, J.D., LLC

Re: Money being held in Escrow

Yes. The money should be held in a separate interest-bearing account and the interest should accrue to the account in your mother's favor. If it is only going to be held for a short time, then it is appropriate that it be held in the lawyer's trust account, in which case, as they told you, the interest will go to help the disadvantaged. In neither case will the interest go to the lawyers.

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Answered on 10/11/05, 11:31 am


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