Escrow / Client Account Management

Protecting Client Interests Through Rigorous Fund Management

In transactions involving significant financial stakes—such as real estate deals, investment fund closings, mergers and acquisitions, or litigation settlements—the proper handling of client funds is paramount. One Legal Square Ltd provides expert guidance on the establishment, administration, and compliance of escrow and client trust accounts, ensuring that funds are safeguarded and disbursed in strict accordance with legal and ethical standards.

Our attorneys are well-versed in the rules governing Interest on Lawyers Trust Accounts (IOLTA), escrow agreements, and fiduciary responsibilities under England and Wales and applicable state bar regulations. We help clients structure accounts that minimize risk, maintain transparency, and comply with all regulatory requirements.

Key Practices in Escrow and Client Account Management

One Legal Square Ltd advises on and implements best practices to ensure the integrity of client funds, including:

• Using Client Escrow or Trust Accounts – Establishing dedicated IOLTA-compliant or non-interest-bearing escrow accounts to hold client or third-party funds separately from operating accounts, in full compliance with bar rules and banking regulations.
• Segregating Client Funds from Firm Funds – Strict separation of client monies to prevent commingling, preserving the fiduciary duty owed to clients and avoiding ethical violations.
• Releasing Funds Strictly Per Written Disbursement Instructions – Drafting and enforcing clear, written escrow agreements that specify conditions for release, ensuring funds are disbursed only upon satisfaction of all agreed terms.
• Maintaining Dual Authorization and Audit Trails – Implementing procedures requiring dual signatures or approvals for disbursements, coupled with comprehensive record-keeping to create verifiable audit trails for all transactions.
• Reconciling Accounts Regularly – Conducting monthly three-way reconciliations (comparing bank statements, client ledgers, and journal records) to detect discrepancies promptly and maintain accurate balances.

Whether you are a law firm managing client trust accounts, a real estate professional handling earnest money deposits, or a business engaged in complex transactions requiring escrow services, One Legal Square Ltd offers tailored solutions to protect all parties involved. We also assist with responses to bar inquiries, audits, or disputes arising from fund management issues.

For more information on how we can assist you with your specific legal matters or questions, reach out to us here.