An attorney trust account is where your settlement check lands first, before a dollar of it reaches you. Arizona requires every lawyer holding client funds to keep those funds in a separate account, apart from the firm’s own operating money. The reason is simple. Your settlement isn’t the law firm’s money, even briefly, and the rules treat it that way.
Why your settlement doesn’t go straight to you
When a case settles, the insurance company typically sends one check made out to you and your attorney jointly. Your attorney deposits that check into the firm’s trust account, sometimes called an IOLTA account. From there, your attorney disburses the funds according to the settlement statement: attorney fees, case costs, any medical liens, and finally your net proceeds. This process usually takes a few days to a couple of weeks, not months, once the check clears.
What ER 1.15 actually requires
Arizona’s ER 1.15 governs how lawyers handle client property, including money. It requires attorneys to keep client and third-party funds separate from their own, in an account at an approved financial institution. Attorneys have to notify you promptly once funds arrive. They have to deliver your share promptly too. Mixing client trust funds with the firm’s operating account is called commingling, and it’s a serious ethics violation on its own. That’s true even if every dollar eventually reaches the right place.
What happens when a settlement is disputed
Say you dispute your fee, or a lienholder disputes what they’re owed. Your attorney can’t just release the disputed portion and hope it works out. The disputed amount has to stay in the trust account until the dispute resolves. Your attorney releases any undisputed portion to you right away, though. This rule protects you specifically. Your attorney can’t pressure you into accepting a number by holding your entire settlement hostage over one contested line item.
What to expect in your own settlement statement
Ask your attorney for an itemized settlement statement. It should show the gross settlement, the attorney fee, itemized costs, any liens paid, and your net amount. A properly run trust account produces a clean paper trail. A reputable firm won’t hesitate to show it to you. If the math doesn’t add up, or the explanation feels vague, press on that directly.
Why this system exists in the first place
Client trust accounting isn’t paperwork for its own sake. Arizona enforces this area of attorney regulation heavily, precisely because client money moving through a lawyer’s hands creates real risk when nobody checks it. Every Arizona attorney certifies compliance with the trust accounting rules each year as part of their bar dues. Violations rank among the more common sources of serious discipline.
The bottom line
An attorney trust account keeps your settlement money legally separate from your lawyer’s own funds until it’s time to pay you. The rules exist specifically to protect clients. They cover how quickly your attorney notifies you, how quickly you get paid, and what happens when part of the money is in dispute. A clear, itemized settlement statement is your best window into whether the process worked the way it’s supposed to.
Frequently asked questions
The insurance company typically pays your attorney and you jointly. Your attorney deposits it into a trust account, then disburses fees, costs, liens, and your net proceeds from there.
ER 1.15 requires lawyers to keep client funds separate from firm funds, notify clients promptly when funds arrive, and deliver their share promptly too.
The disputed portion stays in the trust account until resolved, but your attorney must release any undisputed portion to you right away.
Ask for an itemized settlement statement showing the gross settlement, attorney fee, costs, liens paid, and your net amount. A reputable firm will provide this without hesitation.
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Read the rule directly: State Bar of Arizona, ER 1.15 Safekeeping Property.
This article explains general Arizona trust accounting rules for informational purposes and is not legal advice. Ask your attorney for an itemized statement for your specific settlement.