Types of Trust Accounts
Trust accounts are either general or specific. A general trust account contains money received in trust from or held on behalf of more than one client. In other words, a general trust account may contain all of the trust money you hold for or on behalf of all of your clients.
A client may request in writing that you pay trust money into a specific trust account. A specific trust account is an account that you maintain on behalf of a specific client, and which is designated as such. The interest earned on a specific trust account is the property of the client and will not be paid to the New Brunswick Law Foundation. This type of trust account may be appropriate, for example, if you are going to be holding a large sum of money for a client for an extended period of time.
The Law Society recommends that you maintain only one, or at most two general trust accounts. Experience has shown that where numerous general trust accounts are held, there are more errors and shortfalls, to say nothing of the increased bookkeeping fees.