What is a primary responsibility regarding client trust accounts?

• A. Mix personal funds with client funds as needed to cover expenses.
• B. Maintain separate trust and operating accounts and keep accurate accounting.
• C. Avoid audits.
• D. Use only a single account with no separation.

Answer: (B)

The fundamental rule about client trust accounts is to keep client funds separate from your own and to maintain clear, accurate records of every transaction. Money received for clients must go into a dedicated trust account, not into your operating or personal accounts, so you never mix funds or use client money for your own expenses. Alongside this separation, you need precise accounting that tracks all deposits, withdrawals, and disbursements for each client, ensuring funds are available when owed and that there is a transparent trail for audits or reviews. This approach protects clients, demonstrates accountability, and fulfills professional obligations.

Mixing personal funds with client funds breaches the rule against commingling. Avoiding audits undermines accountability, and using a single account with no separation makes it impossible to distinguish client funds from your own, which is not acceptable under trust accounting rules.