Trust account reconciliation rules: what the ABA and state bars say

Each state sets its own trust accounting rules. Here is what three widely used sources say; read your own state's rule before relying on any of it.

ABA Model Rules on Client Trust Account Records

Rule 1 lists the records a lawyer should keep, including a ledger for each client, copies of monthly trial balances and quarterly reconciliations of the client trust account, kept for five years. The comment says monthly reconciliation is the better practice.

North Carolina, Rule 1.15-3(d)

Rule 1.15-3(d) requires a quarterly reconciliation report for each general trust account showing that three balances are equal: the general ledger balance, the total of all positive client and administrative ledger balances, and the adjusted bank balance (ending balance plus outstanding deposits minus outstanding checks). The report is signed and dated and kept for six years. The NC State Bar's Lawyer's Trust Account Handbook explains the process.

California

The State Bar's Handbook on Client Trust Accounting describes a monthly reconciliation of the client ledgers, the account journal and the bank statement, and the bar publishes a free reconciliation form.

Real estate

Real estate commissions have their own trust and escrow account rules for brokers and property managers, including reconciliation. Check your state commission's rules.

Tiesheet produces the numbers these reconciliations need; it doesn't decide whether you comply.

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.