Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

No Cushion! Trust Accounts Aren’t a Savings Account! #legalaccounting #lawfirms #trustaccounting

22 May 2026 · 0 min

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In this brief dialogue, two speakers discuss proper handling of client trust accounts in law firms. They emphasize that trust accounts are not a savings buffer for the firm and must never be used for operating expenses such as payroll. Using trust funds for the firm’s own needs effectively hides income and violates ethical and legal rules. The speakers warn that some practitioners forget these rules, especially when cash‑flow is tight, but stress that the correct practice is to keep trust money separate and only disburse it for client‑related purposes.

I should leave it in the trust as a cushion. No cushion.
It's not a savings account for the firm.
Because when you hide that and don't move it to the operating, you've now hidden income.
Correct. Big no-no.
I think sometimes people forget that. And then obviously, if you're running low on money and you don't have enough money to do your payroll, you don't ever use your trust account funds.
No, please, no.