Financial Considerations
It is incumbent upon the attorney or law firm to determine whether the amount of interest an account will generate will justify the cost of opening and maintaining the account for the client. If the attorney can earn interest for the client, the attorney must do so. In deciding what benchmark rate of interest a separate client trust account could earn, the attorney may, but is not required to, consider all costs associated with such an account. However, attorneys are reminded that they may, if they choose, bear all costs associated with the account so that the client may earn net interest. Several cost factors that may be considered in this determination include: Internal costs:
External costs:
After an approximation of these costs has been made, this amount becomes the benchmark amount of interest. If a particular client's funds earn that benchmark figure, then the money must be placed in a separate account for the client.
Principal Deposit: $1,000
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