Closing a Trust Account

Report on Opening or Closing a Trust Account (English)
What are the steps for closing a mixed trust account?
 I would like to close my trust account but I still hold funds in trust that are unclaimed. What should I do?
How do I advise the Law Foundation of Ontario that I have closed a mixed trust account?


Q: What are the steps for closing a mixed trust account?

A: Prior to closing any trust account, there must be a zero account balance. You must return to clients any funds held in the trust account and, where applicable, you may apply to transfer any unclaimed funds to the Law Society's Unclaimed Trust Fund. Once all the funds have been disbursed from the account, you may instruct your financial institution to close the account and should request written confirmation that the account has been closed. Any associated service charges to close the account or obtain written confirmation should be drawn from your general account. Once you receive written confirmation that the mixed trust account has been closed, you must inform the Law Society of Upper Canada of the account closure, via Report on Opening or Closing a Trust Account.

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 Q: I would like to close my trust account but I still hold funds in trust that are unclaimed. What should I do?

A:Section 59.6 of the Law Society Act provides that you may be eligible to apply to transfer unclaimed trust funds to the Law Society of Upper Canada, where you have held funds in trust for at least two years because you are unable to determine who is entitled to the funds or, after reasonable efforts, you cannot locate the person(s) entitled to the funds. For more information, see the Unclaimed Trust Fund and By-law 10.

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 Q: How do I advise the Law Foundation of Ontario that I have closed a mixed trust account, so that they know not to continue to expect to receive interest in respect of that account? 

A: You must immediately advise the Law Society of Upper Canada any time you close a mixed trust account. See the Report on Opening or Closing a Trust Account. This information will be shared with the Law Foundation of Ontario.

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