Trust Accounting
/ˈtrʌst əˌkaʊntɪŋ/
Definitions
- (n.) The process of maintaining accurate records and financial statements of assets held in trust, ensuring compliance with fiduciary duties and legal requirements.
The lawyer is responsible for trust accounting to ensure all client funds are properly managed.
- (n.) A specialized area of accounting focusing on the management and reporting of trusts' income, expenses, and distributions.
Trust accounting requires meticulous detail to avoid breaches of fiduciary duty.
Forms
- trust accounting
Related terms
See also
Commentary
Trust accounting must comply with both legal standards and ethical obligations to prevent commingling of funds and ensure transparency in managing trust assets.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.