A separate interest bearing trust account should be established when the amount of client funds and the time the funds are expected to be held will generate sufficient interest to exceed the service charges and administrative expense associated with setting up a separate account.  Some banks will allow you to set up the trust in your client’s name and your client’s tax ID number, with your law firm as the only signatory.  Some banks will not permit firms to establish separate accounts using a client's tax ID number.  In these situations, the account should be established as “Trust Account for <client’s name>” with your law firm’s tax ID number.  When the interest is paid to the client, you can issue a Form 1099 to the client for the interest disbursed to the client.  It is important that the name of the account indicate that it is held in trust for the client, to give notice to the world, e.g., creditors, that the funds are being held in a fiduciary capacity.