Where should client funds be held by a NY attorney?

Where should client funds be held by a NY attorney?

• A. Client trust account in NY
• B. Personal savings account
• C. Operating account
• D. Joint account with client

Answer: (A)

Client funds must be kept in a dedicated client trust account in New York. Attorneys are fiduciaries for their clients, so money that belongs to clients or third parties should never be mixed with the attorney’s own funds or used for the firm’s expenses. A separate trust account protects the client’s property, ensures accurate accounting, and supports proper disciplinary compliance. In New York, this means the funds go into a client trust (often called a trust or IOLA/IOLTA-type account), not into a personal savings account, an operating account, or a joint account with the client, which would risk commingling and misappropriation.

Client funds must be kept in a dedicated client trust account in New York. Attorneys are fiduciaries for their clients, so money that belongs to clients or third parties should never be mixed with the attorney’s own funds or used for the firm’s expenses. A separate trust account protects the client’s property, ensures accurate accounting, and supports proper disciplinary compliance. In New York, this means the funds go into a client trust (often called a trust or IOLA/IOLTA-type account), not into a personal savings account, an operating account, or a joint account with the client, which would risk commingling and misappropriation.