A trust payment records money paid out of the trust account on a matter. The video below shows the full process; the summary underneath covers the same steps.
What is a trust payment?
A trust payment is money paid out of the trust account on behalf of a client — for example, disbursing funds held on a matter. Because trust money belongs to the client, trust payments are governed by trust-accounting rules and must be properly authorised and recorded against the matter’s trust ledger.
How to record a trust payment
Recording a trust payment follows these stages. Watch the video above for the exact screens; the steps below are the summary.
- Open the trust account on the relevant matter.
- Enter the payment details — who is being paid, the amount, the date and the purpose.
- Check there are sufficient cleared trust funds available on the matter.
- Authorise the payment so it is finalised and recorded against the trust ledger.
Common questions
Can I overdraw the trust account?
No. Law App is designed to prevent a matter’s trust balance from going into deficit, so you cannot pay out more than the cleared funds held for that matter. This is a key trust-accounting protection.
Do trust payments need to be authorised?
Yes. A trust payment is recorded and then authorised, which finalises it and records it against the trust ledger. Authorisation is part of keeping a compliant trust record.
What is the difference between a trust payment and a general payment?
A trust payment moves client money out of the trust account under trust rules. A general payment is made from the firm’s own general (office) account. The money comes from different accounts and is governed by different rules.
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