Trust Accounts Articles

Legal Marketplace Payments: Trust Accounts, Earned Fees and Client Funds

A legal marketplace cannot treat every payment as ordinary platform revenue followed by a provider payout. Client advances, earned legal fees, settlement proceeds and the firm’s payments to staff or vendors have different owners and purposes. Determine that character before selecting the destination account. A processor balance, wallet label or split-payment feature does not establish that client funds are being held in a compliant lawyer trust account.