Prior to closing any trust account, there must be a zero account balance. You must return to clients any funds held in the trust account and, where applicable, you may apply to transfer any unclaimed funds to the Law Society's Unclaimed Trust Fund. Once all the funds have been disbursed from the account, you may instruct your financial institution to close the account and should request written confirmation that the account has been closed. Any associated service charges to close the account or obtain written confirmation should be drawn from your general account. Once you receive written confirmation that the mixed trust account has been closed, you must inform the Law Society of Ontario of the account closure, via
Report on Opening or Closing a Trust Account
It is important to keep in mind that when a trust account (or general account) has been closed, you may no longer have access to online statements and your bank may not retain copies of the monthly bank statements for the required retention periods outlined in By-Law 9. Therefore, prior to closing the trust account with the bank, you should ensure that you obtain electronic or paper copies of all monthly bank statements required to comply with your record keeping obligations under By-Law 9.