Jim Calloway of the always excellent Law Practice Tips Blog wrote a great post today about the relative safety of trust account funds in the possible event of bank failures. you can read it here.
The gist of the article: it is fairly well-known that the FDIC insures up to $100,000 per person per bank. So what happens if a client of yours has $75,000 in your trust account and $75,000 in a personal account in the same bank? It might be time to analyze whether you need multiple trust accounts spread across multiple banks, as well as a new question on your intake sheet.
Jim also links to an article on the topic by the Ethics Counsel of the Virginia State Bar, James McCauley.
Given the week we just had, it’s probably worth a few minutes of your time to Read Jim’s post and James’ article.
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