can someone give me two definitions from a bookkeeper point of view?

Question

escrow account? trust account?

thank you so much.

Answer 1

I'm a CPA. An escrow account is an account where a third party accumulates money for the ultimate benefit of somebody else. The most common application is where a home lender accumulates enough money in a special account to pay the borrower's property taxes and home-owner's insurance. Most lenders require this until you get below owing 80% of the value of the house.

A trust account is typically invested in the stock and bond markets where a fiduciary watches the market and has an obligation to manage the cash and other investments in a manner that is in the best interests of the account owner.

Answer 2

An escrow account is a seperate account on the company's books that tracks escrow payments that have been paid and/or received. Such an account is used when there is no trust requirement inposed on the holder of the escrow funds by law.
An escrow trust is used where the law imposes a segregation of escrow assets from the company assets. Generally used in conjunction with law firms and settlements recaived for clients. The trustee holds the funds and disperses to various people or entities based on a court order. I am a CPA also.

Answer 3

escrow is a hold of your funds set aside each month for purposes that take place over a period of time payments are monthly and taxes and insurances can show up yearly so this yearly stuff is called escrow(yearly stuff)

trust account is the accountability of a holding ($) for whom the trust is for

Answer 4

Taxman
The Beatles_you tube

taxes,do not screw your budget,pay on time