Bank fees in a trust account: how to record them

A $12 service charge is the most common reason a trust account doesn't reconcile: the bank takes it, nobody records it, and the bank ends up lower than the book.

Why you can't just charge it to a client

The fee isn't a client's expense, so taking it from a client ledger uses that client's money for the firm's cost.

What the Model Rule allows

ABA Model Rule 1.15(b): “A lawyer may deposit the lawyer's own funds in a client trust account for the sole purpose of paying bank service charges on that account, but only in an amount necessary for that purpose.” Many states have adopted similar wording. Record that deposit on its own ledger (for example “Firm funds — bank charges”) and charge fees to it.

Better: keep fees out

Many banks will debit trust account fees to the firm's operating account instead. Ask.

In Tiesheet

Fees appear under bank transactions not in the trust ledger, and if they explain the whole difference Tiesheet says so.

Last reviewed 2026-10-27. General information, not legal or accounting advice — your state's rules decide how trust accounts must be kept and reconciled.