trust-account

Vocabulary Word

Definition

A 'trust account' is a special type of bank account that holds money for someone else. It's usually used by professionals like lawyers or real estate agents to handle money for their clients.

Examples in Different Contexts

In legal practices, trust accounts are used to hold client funds separately from a law firm's operating funds. A lawyer might state, 'Trust accounts ensure that client funds are protected and properly accounted for during legal proceedings.'

Practice Scenarios

Business

Scenario:

Our product development fund might be better managed. A separate account solution might be appropriate.

Response:

I agree. Moving the product development funds to a trust account will ensure better management.

Legal

Scenario:

Our team assessed the progress of the settlement. Receiving some funds would give our client stability.

Response:

I agree. Let's put the settlement money in a trust account for the client's future needs.