Where must funds belonging to a client be kept in relation to a lawyer’s practice?

• A. In a special account at a NYS bank
• B. In the attorney's personal savings account
• C. In the client’s personal checking account
• D. In any available savings account regardless of jurisdiction

Answer: (A)

Funds belonging to a client must be held in a separate client trust account, not in the lawyer’s own funds. This separation prevents commingling and ensures proper accounting and prompt disbursement for authorized purposes. In New York practice, those funds are deposited into a special trust account at a bank chartered in New York (often under the IOLTA program for small balances). This setup protects the client’s money and maintains clear, fiduciary control by the attorney.

Putting client funds in the lawyer’s personal savings or in the client’s own personal checking would blur ownership and risk misappropriation. Depositing into a general savings account regardless of jurisdiction would fail to meet the required trust-account framework and would violate professional conduct rules.