Most law firms need a least a mixed trust account - a bank account to hold money for more than one clients. You need to be aware of the Law Society's rules regarding opening and closing a mixed trust account.

Open a mixed trust account

You have to give a written direction to your bank to pay any interest on the account directly to The Law Foundation of Ontario (LFO). You should also send a copy of this letter to the LFO.

You must file Form 2, Report on Opening a Mixed Trust Account, to the LFO. Form 2 should be sent within 30 days of opening the account.

You must direct the bank to deduct any service charges for your trust account from your general account.

You should not allow the bank to remove any money from your trust account on its own.

Close a mixed trust account

You must file Form 3, Report on Closing a Mixed Trust Account, to the LFO. Form 3 should be sent within 30 days of closing the account.

One stop accounting services for law firms: legal bookkeeping service, spot audit help, and tax return services.