What is expected regarding client trust accounts and ethical handling of client funds?

• A. Do not commingle funds, follow firm policies and state rules for trust accounts, and ensure accurate accounting and transparency.
• B. It’s acceptable to commingle funds as long as it’s convenience.
• C. Client funds should be kept in a personal account if the client approves.
• D. There is no required accounting for trust funds.

Answer: (D)

Handling client funds requires a fiduciary duty to keep those funds completely separate from the attorney’s own money. This means never commingling client funds with personal or firm dollars, using a designated trust account (often an IOLTA), and following both the firm’s policies and applicable state ethics rules. Along with separation, you must maintain precise, auditable records—accurate deposits, disbursements, and reconciliations—so you can provide transparent accounting to clients and auditors. This careful, transparent approach protects clients’ funds and upholds professional responsibility.

Options that suggest mixing funds for convenience, using a personal account for client money, or forgoing proper accounting do not meet ethical standards, so they’re not appropriate.