Fort Lauderdale personal injury lawyers
Fort Lauderdale Personal Injury Lawyers Wonder about Clients Funds If Bank Fails
A Fort Lauderdale personal injury attorney recently wondered about whether he would be responsible for a client’s trust account if a bank failed. Banks are failing at an alarming rate and lawyers who are holding client’s money are wondering if they are going to be liable for their client’s funds if the bank fails.
Lawyers have been flooding bar associations with questions about whether they are responsible for client’s trust accounts if the bank fails. The consensus of most bar associations is that the lawyers must be cautious about where they hold clients’ funds, making sure their Federal Deposit Insurance Corp-insured, (FDIC) in other words a solid bank. Opinions vary on whether moneys should be split up into different banks to take advantage of $250,000 insured deposits.
According to interviews and research with a variety of bar associations around the country, including those in California, Florida and Virginia, lawyers should not worry about sanctions or disciplinary actions if a bank failure leads to the loss of a client’s funds, provided the lawyer chose an FDIC-insured, stable bank.