What is a Trust Ledger?
A Trust Ledger is a statement that shows the funds that have been deposited in your lawyer’s trust account as well as the funds that have been withdrawn from your lawyer’s trust account in relation to a specific file. As an example, if your lawyer receives $100,000 on one of your files in trust, and pays your line of credit in the amount of $40,000 and returns the balance to you, you would see the following on the trust ledger:
| Description | Outgoing Funds | Incoming Funds |
|---|---|---|
|
Refinance Proceeds |
|
$100,000 |
|
Paid to Line of Credit |
$40,000 |
|
|
Paid to you on Closing |
$60,000 |
|
A trust ledger, therefore, represents a snapshot of the lawyer’s bank statements that consist of the transactions belonging to your file.
