Where are settlement funds typically deposited?

Settlement funds are typically deposited into a designated escrow account. An escrow account is a third-party account that holds funds until the terms of a legal agreement are met. The escrow account is often managed by a neutral party such as a lawyer, bank, or trustee to ensure that the funds are protected and disbursed properly. After both parties have agreed to the settlement, the funds are deposited into the escrow account, and the disbursement of the funds is handled according to the terms of the settlement. Settlement funds are also sometimes deposited into a trust fund or interest-bearing account, depending on the specifics of the agreement.

This mind map was published on 9 June 2023 and has been viewed 82 times.