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BluPay glossary

Client trust accounting

The recording and control of money held on behalf of clients or other entitled parties, separately from the professional’s own funds under applicable rules.

Payments & operationsintermediateSources checked

Also known as trust accounting

What it means

Identify whose money it is

A professional must distinguish earned revenue from funds held for a client or another party. Trust-accounting records should identify the owner or matter, receipts, authorized disbursements and remaining balances.

The payment rail does not decide compliance

Receiving funds in cryptocurrency does not establish whether a trust account may hold that asset or how it must be valued and transferred. Professional-conduct and banking rules must be checked for the relevant jurisdiction. Account registration, recordkeeping and reconciliation are separate from simply accepting a payment.

Related concepts

IOLTA, Payment reconciliation, Escrow.

In practice

A concrete example

A law practice records an advance payment against the client matter and determines its required account treatment before moving or spending it.

Technical notes & boundaries

The sources describe California attorney rules. They must not be presented as uniform requirements for every country, profession or cryptocurrency arrangement.

Go to the source.

Original references used for this definition. Product details and standards can change.

  1. 01State Bar of California: client trust account guidelineshttps://www.calbar.ca.gov/legal-professionals/maintaining-compliance/client-trust-accounting-iolta/client-trust-account-guidelines-attorneys
  2. 02State Bar of California: client trust accountinghttps://www.calbar.ca.gov/Attorneys/Conduct-Discipline/Client-Trust-Accounting-IOLTA