07/22/2024
What is an Escrow and Why Does it Have My Check?
To stay secure and protect clients, good lawyers maintain a “trust account” with a reputable bank. Lawyers are not allowed to gain interest on these accounts, as that could incentivize some lawyers to take their sweet time distributing money. Trusts, also known as escrow accounts, are where the Abrams Landau firm holds a client’s settlement funds for distribution.
This almost never happens in a Worker’s Compensation case, where the money is sent directly to the worker and the attorney for costs and legal fees. However, in car crash cases, bike accidents, and other negligence cases, the settlement check often has to go through a trust account, which takes a week or more.
This is because large settlement checks in negligence cases need to “clear” the bank, meaning the funds must be deposited into the trust account before they can be disbursed. If there are no claims against these funds, other than what is to be distributed to the client and the law firm, the money can then be disbursed via an escrow check.
Doug Landau has been known to personally deliver large settlement checks across the country, including on the race course at the Wi******er Apple Blossom Festival, over ice cream in Orange County, and to Law Offices in the District of Columbia and beyond.
Read more on our Abrams Landau Injury Law Site:
What is “escrow” and why does my settlement check have to go there? To stay secure and protect clients, good lawyers maintain a “trust account” with a reputable bank. Lawyers are not allowed to gain interest on these accounts, as that could incentivize some lawyers to take their sweet time d...