Bill
HB 253
HB 253 would regulate lawyers’ interest-bearing pooled trust accounts to determine who benefits from interest, how funds are managed, and what protections and reporting are require
HB 253 (NH 2026) – Relative to Interest-Bearing Pooled Trust Accounts Maintained by Lawyers
Overview
HB 253 proposes rules governing interest-bearing pooled trust accounts that lawyers maintain on behalf of clients. The bill outlines the purpose, operation, and governance of these trust accounts, with attention to how interest earnings are handled and how clients or beneficiaries may benefit from the interest.
Purpose and Intent
- Establish or clarify requirements for lawyers who maintain pooled trust accounts that earn interest.
- Ensure proper handling of interest earnings generated by funds held in trust on behalf of clients or beneficiaries.
- Promote transparency and accountability in the management of these pooled trust accounts.
Key Provisions (highlights)
- Establishment and maintenance of pooled trust accounts:
- Defines what constitutes a pooled trust account maintained by a lawyer.
- Sets standards for recordkeeping, such as account ledgers, balance reporting, and transaction documentation.
- Interest earnings:
- Specifies how interest earned on funds in pooled trust accounts is to be treated.
- Potentially delineates whether interest accrues to the individual client/beneficiary, to a state-approved charitable/institutional pool, or to a designated fund.
- May include requirements for informing clients about interest accrual and distribution.
- Allocation and distribution of interest:
- If the bill designates a recipient of interest, it should outline the method and timeline for distributing or remitting interest.
- Clarifies whether interest is paid to the client, to a charitable pool, or to a state treasury or other entity.
- Compliance and governance:
- Specifies duties for attorneys, including fiduciary responsibilities, due diligence, compliance with trust accounting standards, and internal controls.
- Requires periodic reporting or audit provisions to ensure lawful management of accounts.
- Addresses penalties or remedies for mishandling or misappropriation of funds or interest.
- Consumer/beneficiary protections:
- Aims to protect clients and beneficiaries from improper handling of funds or interest.
- May include avenues for complaint, dispute resolution, or corrective actions.
Who is Affected
- Attorneys who maintain pooled trust accounts on behalf of clients.
- Clients or beneficiaries whose funds are held in these pooled accounts.
- Law firms and possibly professional associations or bar regulators overseeing trust accounting practices.
- Potentially state general revenue or designated charitable/research funds if the bill designates interest to such recipients.
Timeline and Procedural History
- Introduced: January 7–8, 2025 (referred to Judiciary)
- Public hearing: February 5, 2025
- Retained in committee: March 4, 2025
- Committee work sessions and executive sessions: 2025 (noted activity through 2025)
- Committee report: Inexpedient to Legislate, vote 15-0 (as of September 10, 2025 HC 51 P. 13)
- Executive session and further actions: Late 2025 to January 2026
- Status: As of January 7, 2026, listed as Inexpedient to Legislate (a disposition indicating the bill did not advance out of committee). This suggests the bill did not reach passage in this session, though the bill’s provisions remain on the legislative record for potential future consideration or revision.
Notes
- The “Inexpedient to Legislate” designation is an indication that the committee recommended not advancing the bill. This is not a final disposition on the ideas contained in the bill; supporters could resurrect or reintroduce similar provisions in a future session with amendments.
- Specific details such as the exact allocation of interest, exact filing/reporting requirements, and penalties would be found in the bill text itself and any adopted committee amendments.
Bottom-line
HB 253 sought to regulate interest-bearing pooled trust accounts held by lawyers, addressing who receives interest, how funds are managed, and what protections and reporting are required. The bill progressed through hearings and committee consideration but was ultimately reported by the committee as inexpedient to legislate in 2025, with the matter not advancing in the 2026 session. Readers should monitor any future reintroduction or amendments for updated provisions.
Compiled from official sources — confirm details with the bill’s official record.
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