If you have a trust account, by now you have no doubt received a notice from your bank requesting information on the clients’ trust account balances. Why are they doing this? Your account is covered by deposit insurance, but only up to $100,000. If your practice involves estates or real estate, your trust account probably contains an amount much larger than this. Listing the trust beneficiaries separately allows for $100,000 in coverage for each of your clients.
The banks give you the option of reporting client name and address, or you can maintain your clients’ privacy by providing only a client code (in PCLaw it is known as client nickname).
Reports – Client – Trust listing – date April 30, 2012 – select Totals only – This will produce a list showing the client, their address, and their trust balance.
To get a list with only client codes - Reports – Client – Trust listing – date April 30, 2012 – select Totals only – then select Change to modify the report template. Change the report name at the top – for example “banklist”. In the right-hand box, highlight the client name – click remove – highlight client address – remove – then OK to save the template – change banklist to default – NO – then OK to generate the trust listing.
As always, I invite your comments and suggestions for future post topics. Next Week – PCLaw and Payroll Entries.