Definition, Meaning & Synonyms
trust-account
noun
/trʌst əˈkaʊnt/
Definition
A trust account is a special type of account held by a financial institution that is managed by one party for the benefit of another.
Examples
- The lawyer opened a trust account to manage the settlement money for the family.
- Real estate agents often use trust accounts to hold clients’ deposits until closing.
Meaning
This account is often used to hold and manage funds for a specific purpose, typically involving a legal agreement or fiduciary responsibility.
Synonyms
- escrow account
- fiduciary account
