After reading this module on trust accounting and working through the examples given, you will be able to:
- identify trust money;
- explain the differences between a law firm’s trust bank account and a law firm’s general bank account;
- identify by name and explain the purpose for the required records to be maintained for a law firm’s trust bank account and general bank account;
- know where to find relevant rules about trust accounting including specific deadlines for filing and when entries must be recorded;
- use the checklist in the module to correctly perform a month-end trust account reconciliation;
- state the purpose of a specific trust investment account and identify the criteria to be considered before opening one;
- enter corrections in trust ledgers and the books of original entry; and
- explain the difference between the obligations of a trust account supervisor and of individual members.
The module is designed to contain all information that someone would need to know to be able to successfully complete the examination component of the trust account supervisor approval process.
Disclaimer – This reference material has been prepared to assist lawyers, however, lawyers should always exercise their professional judgment when using the content in practice. It is the responsibility of the lawyer to refer to the most recent legislation, practice directions and any other appropriate sources.