Interest on Trust Accounts
Who is entitled to the interest on a trust account depends on the type of trust account. Under subsection 3(6) of the Rules, a client can instruct you in writing to pay trust money into a specific trust account. A specific trust account is a separate deposit account that you open on behalf of a specific client, and that is designated as a trust account on behalf of that particular client. The interest from a specific trust account is for the benefit of that client.
When you open a general trust account, in which you will deposit money received in trust from more than one client, you must ensure that your financial institution remits all interest earned on your account to the New Brunswick Law Foundation pursuant to subsection 101(1) of the Law Society Act, 1996. You will instruct your bank to remit the interest by filing a ‘Solicitor’s Letter to Depository (LF-1)’.
The interest earned on all general trust accounts in New Brunswick is paid into a fund maintained by the Foundation and is used, amongst other things, for:
legal education; and
bursaries and scholarships for the study of law.