A Lawyers Trust Account is an Escrow Account in which the funds are held in escrow by the lawyer on behalf of his client for undertaking any transaction. It is one of the most preferred ways to undertake business dealings in many offshore destinations.
A Lawyers Trust Account is the preferred way for undertaking real estate transactions in New Zealand where the funds are kept in a separate bank account and also protected by domestic legislation against any possible misuse. The facility is also available through Empire in many other destinations across the globe.
A Lawyers Trust Account is particularly beneficial when you have to transfer or receive funds at an offshore destination but do not have the time to establish a company or open a bank account for the same. The funds can be held in the trust account until the necessary formalities are completed.
Operating a Trust account requires specific instructions from the client to receive or send out funds and transactions through internet banking or other means are not possible. The funds are normally kept in a separate bank account managed by the funds of the lawyer and are separated from other money which may be handled by the lawyer or his firm. A small fee is normally charged by law firms for providing this service.
No designation has been made by the Texas Board of Legal Specialization for a Certificate of Special Competence in this area.