# Client trust account

> A client trust account is a lawyer's bank account for client money, kept apart from the firm's funds. Settlement checks are paid out from it.

Canonical page: https://accidentclaimfacts.com/glossary/client-trust-account/  
Last reviewed: October 29, 2026 by the Accident Claim Facts editorial team  
General information, not legal advice. Talk to a licensed attorney in your state.

## Quick answer

A client trust account is a bank account where a lawyer holds money that belongs to clients or to others, kept apart from the law firm's own money. In an injury case, the settlement check is usually deposited there. The fee, costs and any liens are paid from it, and the client receives the rest.

## In a car accident claim

Lawyer ethics rules set out how this works. Under the ABA's model rule, which states adopt in their own versions, client funds must be kept in a separate account, apart from the lawyer's own money. When money comes in, the lawyer must promptly pay you the funds you are entitled to and, if you ask, give a full accounting. If someone else, such as a hospital with a lien, claims part of the money, that part is kept separate by the lawyer until the dispute is resolved, while undisputed amounts are paid out promptly.

Lawyers must also keep records of these accounts; the model rule suggests keeping them for 5 years after the case ends. A long, unexplained delay in paying out settlement money is a warning sign covered in our guide to [red flags](https://accidentclaimfacts.com/choosing-a-lawyer/red-flags/). The [contingency fees](https://accidentclaimfacts.com/money/contingency-fees/) and [fee agreements](https://accidentclaimfacts.com/choosing-a-lawyer/fee-agreements/) guides explain how the payout is worked out.

## Example

> **Example:** A crash claim settles, and the insurer sends the check to the client's lawyer. The lawyer deposits it in the trust account. Once the funds clear, the lawyer pays the agreed fee, the case costs and a hospital lien, then sends the client the balance along with a written closing statement.

## Related terms

- [Closing statement](https://accidentclaimfacts.com/glossary/closing-statement/)
- [Contingency fee](https://accidentclaimfacts.com/glossary/contingency-fee/)
- [Case costs](https://accidentclaimfacts.com/glossary/case-costs/)
- [Lien](https://accidentclaimfacts.com/glossary/lien/)

## FAQ

### Why does my settlement check go to my lawyer's trust account?

The account keeps your money separate from the lawyer's, so it cannot be used for the firm's own bills. It also creates a record of every payment made from your recovery.

### What can I do if my lawyer is holding my money too long?

Ask in writing for the status and a full accounting, which the rules entitle you to. If that does not resolve it, you can complain to the lawyer disciplinary agency in the state where the lawyer is licensed.

## Sources

- [American Bar Association, Model Rules of Professional Conduct, Rule 1.15: Safekeeping Property](https://www.americanbar.org/groups/professional_responsibility/publications/model_rules_of_professional_conduct/rule_1_15_safekeeping_property/) — separate accounts, prompt delivery and disputed funds
- [American Bar Association, Consumer FAQs](https://www.americanbar.org/groups/professional_responsibility/resources/resources_for_the_public/consumer_faqs/) — where to file a complaint about a lawyer