Personal Property Securities Act 2009

Solicitor Trust Accounts: Of no interest

It is a little-known fact outside of law firms that funds held in solicitor trust accounts on behalf of clients earn no interest – and this has nothing to do with current low interest rates!

To clarify, any interest that is earned is directed to the Law Society of NSW on account of the Public Purpose Fund where it is distributed to a number of areas, including:

  • co-funding Legal Aid,
  • the Office of the Legal Services Commissioner – regulating NSW solicitors,
  • the Professional Standards Divisions of the Law Society and the Bar Association – regulating solicitors and barristers,
  • the Law & Justice Foundation –  improving access to justice in NSW, particularly for socially and economically disadvantaged people,
  • community legal centres,
  • discretionary payments for community legal education.

If a client, however, wishes funds in trust to earn interest, then they must formally (in writing) instruct their solicitor to deposit trust funds into a controlled money account, similarly to a term deposit account, to earn interest on the money while under the control of the solicitor.

Get Help

Please provide details regarding your matter so we can assist you.

We respond in 24 hours or less!*

*During regular business hours

Liability limited by a scheme approved under Professional Standards Legislation

Send us a Message

  • This field is for validation purposes and should be left unchanged.

Contact Us

Free Call 1800 994 279
  • Newcastle 02 4904 8000
    1st Floor, Charlestown Commercial Centre
    29 Smith Street
    Charlestown, NSW, 2290
  • 11 Mitchell Drive,
    East Maitland, NSW, 2323
  • Sydney CBD 02 8022 9001
    Level 8, 65 York Street
    Sydney, NSW, 2000
Due to the current COVID-19 lockdown our employees are working remotely. We are still fully operational and available to assist you.