Transferring Money From a Controlled Money Account to a Term Deposit Account

01/12/2025
Knowledge

How To

Please see below for information on transferring money from a Controlled Money Account to a Term Deposit Account

Controlled Money is defined as money received or held by a law practice in respect of which the practice has a written direction to deposit the money in an account (other than a general trust account) over which the practice has or will have exclusive control.

Transactions involving transferring money from a Controlled Money Account to a Term Deposit

Open a Controlled Money Account and Term Deposit

When you first open a Controlled Money Account and the monies go out to a Term Deposit, this is considered a withdrawal from the Controlled Money Account. This is because the funds are being moved out of the account to another investment vehicle.
Maturity of a Term Deposit

When the Term Deposit matures and the funds are returned to the Controlled Money Account, this is considered a deposit into the account. The funds are being moved back into the account from the Term Deposit.
Distribution of Funds

When the monies are being paid out to the parties, you should transfer the monies from the Controlled Account into the normal Trust Account and then distribute them. This ensures that all transactions are properly recorded and managed within the Trust Accounting framework.

These steps are crucial for maintaining accurate records and ensuring compliance with Trust Accounting regulations.

Last Modified Date

1/12/2025 3:03 pm

Title

Transferring Money From a Controlled Money Account to a Term Deposit Account

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Transferring-Money-From-a-Controlled-Money-Account-to-a-Term-Deposit-Account-AU

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