When a lawyer uses a trust account to handle client funds, which practice is required?

• A. Commingling is allowed if done carefully.
• B. Personal accounts must be used for some funds.
• C. Funds must be deposited in a separate trust account and properly reconciled.
• D. No separate accounting is required.

Answer: (C)

Safeguarding client funds means keeping them completely separate from the lawyer’s own money. The required practice is to deposit all client funds into a dedicated trust account and maintain meticulous records that are regularly reconciled with the bank statements. This reconciliation—comparing the trust ledger to the bank balance—ensures accuracy, traceability, and prevents funds from being mixed with the attorney’s funds. It also supports proper withdrawal of funds only for authorized purposes and keeps the work auditable. Therefore, the rule is to use a separate trust account and perform proper reconciliation. Commingling is not allowed, personal accounts cannot house client funds, and keeping no separate accounting is not correct.