Claim to Trust Money

Jurisdiction: Canada | Province: Alberta

What is a Claim to Trust Money?

A Claim to Trust Money is a written form you submit to the person or organization holding funds in trust to you or others. You use it to say, “I am entitled to part or all of that trust money, and here is why.” The form sets out who you are, what amount you claim, and the legal basis for your claim. You attach proof. The trust holder then decides whether to pay you, hold the money, or ask the court for instructions.

You see trust money in many legal and business settings. A civil enforcement agency may hold proceeds from a seizure or sale. A lawyer may hold settlement funds in a trust account. A real estate brokerage may hold a purchase deposit. A court clerk may hold garnished funds. A property manager may hold a tenant’s security deposit. In each case, the funds are not the holder’s money. The funds sit in trust until someone shows they should be paid out.

Who typically uses this form?

Creditors with judgments. Subcontractors and suppliers who assert trust rights. Buyers or sellers disputing a deposit. Tenants seeking a deposit return. Spouses or former spouses with support orders. Insurers asserting subrogation rights. Assignees of accounts. Receivers, bankruptcy trustees, and estate personal representatives. You may also use it as an individual if you are owed money and know those funds sit in trust.

You would need this form when you want to recover money held in a trust account before it is paid to someone else. The form puts your claim on record and starts a review process. It also helps you meet statutory notice or deadline requirements. If you do nothing, the trust holder may distribute the funds without you. Your claim protects your position and can stop a premature payout.

Typical usage scenarios

• You obtained a judgment and the civil enforcement agency seized assets and sold them. The agency now holds the sale proceeds in trust. You file your Claim to Trust Money to share in those proceeds.
• You are a subcontractor. The owner paid the contractor, who placed the funds in the contractor’s lawyer’s trust account. You assert your trust claim to those funds to secure payment for your work.
• You may be a buyer whose deal collapsed. The brokerage holds the deposit. You submit your claim and explain why the deposit should be released to you.
• You could also be a tenant. You file a claim with the landlord or property manager, who holds your security deposit in trust. Or you are a creditor and know the court clerk holds garnished funds. You file your claim so the court can direct payment to you.

In short, the form is your formal notice to the trust holder. It tells them who you are, what you want, and why you are entitled. It is short, but it carries weight because it is supported by documents and Alberta law governing trust funds.

When Would You Use a Claim to Trust Money?

Use this form when you have a clear line from a debt or entitlement to a pool of funds already sitting in trust. You are not chasing the debtor’s general assets. You are targeting a specific pot of trust money that is known and controlled by a holder.

If you are a judgment creditor, you will use this form after a sheriff or civil enforcement agency completes a seizure or sale. The agency holds the net proceeds. They often invite claims with a notice and deadline. You submit your claim with your judgment, writ, and account details. If you fail to claim, you may miss that distribution.

If you are a subcontractor or supplier, you may use this form when an owner or contractor’s lawyer holds a progress payment in trust. You will set out your trust claim for unpaid work or materials. You attach your invoices and any lien registration. This helps prevent release of funds to a contractor before you are paid.

If you are a buyer or seller in a failed real estate deal, you may use it to seek the return or release of the deposit. The brokerage holds deposits in trust. You file your claim to explain which contract term triggers payment to you. The broker cannot decide a dispute. Your claim may push the other side to consent or move the matter to court.

If you are a tenant, you may use it to recover your security deposit. The landlord must hold it in trust. You submit your claim with a move-out report and forwarding address. If the landlord claims deductions, your claim frames the dispute and creates a paper trail.

If you are owed support, you may claim against funds intercepted or held by a trust holder. Maintenance funds or garnished payments can sit in trust pending distribution. Your claim identifies your priority and any arrears.

If you are an insurer or health plan with a reimbursement right, you may claim against a personal injury settlement held by a lawyer in trust. You explain your subrogation right and attach the plan terms. The lawyer cannot distribute until lien or trust claims are cleared.

If you are an estate beneficiary, you may file a claim with the personal representative holding estate funds in trust. You prove your entitlement under the will or intestacy. If there is a dispute, your claim may lead to a passing of accounts or a court direction.

If you are a bankruptcy trustee or receiver holding funds, you will invite claims under the established priority scheme. Creditors file their claims to share in distributions. A Claim to Trust Money form aligns your records with that process and sets priority facts.

These are practical triggers. In every case, you know who holds the funds, you know the file or transaction, and you can state your legal basis for payment. That is when you use the form.

Legal Characteristics of the Claim to Trust Money

The form itself does not create money from nothing. It is a legal notice and a sworn or affirmed statement of your entitlement. In many settings it is a statutory or procedural step that trust holders rely on before paying out funds. It is legally significant because it tells the holder how to distribute trust money and puts them on notice of your rights.

Is it legally binding?

Your claim binds you to the facts you swear to. It binds the trust holder to consider your claim in good faith. It can compel the holder to pause any payout until your claim is resolved. If the holder ignores a proper claim, they may face liability for a wrongful distribution. If you overclaim or misstate facts, you may face costs or other penalties.

What ensures enforceability?

Evidence and process. You attach court judgments, writs, lien registrations, contracts, invoices, and correspondence that link your claim to the trust funds. You meet deadlines set by law or by the trust holder’s notice. You serve all necessary parties. You sign and, if required, swear the claim before a commissioner for oaths or notary. The holder verifies your documents and either pays you, negotiates a resolution, or seeks a court order.

Priority rules also matter. Trust funds are not always paid first-come, first-served. Different claims can rank ahead of others. Secured claims, statutory trusts, support claims, and certain government claims can have priority. Set-off rights may reduce or defeat a claim. Your form should address these issues. If multiple valid claims exceed the fund, payment may be pro-rated or directed by the court.

General legal considerations are straightforward. The holder cannot release trust money unless a condition is met, all claimants consent, or a court orders it. If there is a real dispute, the holder may pay the money into court and ask for directions. You may need to start a court application if consent is not possible. The form is not a lawsuit. It is the first step to show you are in the distribution line and to preserve your rights.

Limitation periods and deadlines also apply. Even if the fund exists, your underlying debt may be out of time. Or your lien rights may lapse if not preserved. Act promptly when you learn funds are held. If you receive a notice with a response date, meet it. Late claims can be barred or may only be paid if money remains after timely claims.

Finally, accuracy matters. A clean, well-documented claim is more likely to be accepted without a court fight. Vague claims, missing attachments, and math errors slow everything down. Be clear, exact, and complete.

How to Fill Out a Claim to Trust Money

Follow these steps to complete the form and support it with the right documents.

1) Confirm the fund, the holder, and any deadline.

• Identify who holds the money. This could be a lawyer, civil enforcement agency, brokerage, court, or trustee.
• Get the file number, client name, and the approximate amount held.
• Check if the holder issued a notice inviting claims. Note any deadline and format.

2) Identify yourself and your role.

• State your full legal name and contact details.
• Explain your capacity. Are you a creditor, subcontractor, buyer, tenant, beneficiary, assignee, or lawyer for any of these?
• If you act for a company, state your title and authority. Attach a corporate search if needed.

3) Describe the trust funds you are claiming against.

• Name the trust holder and their file reference.
• Describe the source of the funds. For example, sale proceeds, deposit, settlement funds, or garnished wages.
• State the approximate balance if known.

4) State the amount you claim and your calculation.

• Write the principal amount you claim.
• Add interest if applicable. State the rate, start date, and calculation.
• Add recoverable costs if allowed. For example, enforcement costs or filing fees.
• Show your math. Attach a one-page statement of account.

5) Set out the legal basis for your claim.

• Explain in one or two sentences why you are entitled. Keep it plain.
• Examples: “Amount owing under invoice and contract.” “Judgment dated [date].” “Registered lien.” “Support arrears.” “Deposit release under clause X.”
• If your claim depends on a condition, state how the condition was met or failed.

6) Disclose any security, priority, or set-off issues.

• If you hold a security interest, identify it and its registration details.
• If you registered a lien, list the registration number and date.
• If you know of other claims or garnishments, mention them.
• Confirm whether the debtor has raised any set-off. Attach details if known.

7) Attach your supporting documents.

Common attachments include:

• Contract or agreement.
• Invoices and statements of account.
• Judgment, order, or writ.
• Lien registration or notice.
• Deposit receipt and the relevant contract clauses.
• Seizure or sale notice from a civil enforcement agency.
• Correspondence confirming funds held in trust.
• Assignment agreement if you acquired the debt.
• Mark each attachment as a schedule. Label them A, B, C, and so on.

8) Complete any statutory declaration if required.

• Some holders require a sworn declaration.
• If so, restate the key facts and swear or affirm before a commissioner for oaths or notary.
• Bring government-issued ID. Sign only in front of the commissioner.
• Attach the sworn declaration to your claim.

9) Provide payment directions.

• Tell the holder how to pay you if your claim is accepted.
• Give the payee name exactly as it should appear on the cheque or EFT.
• Provide your lawyer’s trust account details if payment will go to counsel.

10) Sign and date the form.

• Sign in the capacity you stated. Include your name in print.
• If you sign for a company, add your title and authority line.
• Date the form and ensure all schedules are listed.

11) Serve your claim on required parties.

• Deliver your claim to the trust holder by the method they specify.
• Send copies to other known claimants if required or requested.
• Keep proof of delivery. Save email receipts or courier confirmations.

12) Confirm receipt and answer follow-up questions.

• Contact the holder to confirm your claim is complete.
• Respond quickly to requests for missing items. Deadlines still apply.
• If new facts arise, supplement your claim with a short addendum.

13) Monitor the distribution process.

• Ask when the holder expects to distribute funds.
• The holder may circulate a proposed payout schedule.
• If you object to another claim, raise it in writing with reasons and proof.
• Be ready for the holder to seek a court direction if disputes persist.

14) Know what happens if claims exceed the fund.

• If money runs short, payments may be reduced or prioritized.
• The holder may pay certain claims first based on priority rules.
• You may receive a partial distribution now and a second later.

15) Prepare for next steps if there is a dispute.

• If the holder cannot resolve competing claims, they may pay the funds into court.
• You may need to file a court application for directions or summary judgment.
• Use your filed claim and schedules as your core evidence.

Practical tips to avoid delays

• Use the correct file number. Many claims go missing due to wrong references.
• Keep sentences short and facts specific. Avoid argument and rhetoric.
• Do not assume the holder knows your backstory. Spell out the link between your debt and the fund.
• If your claim includes interest, provide a simple daily rate and a to-date total.
• If you rely on a lien or security, make sure it is still valid and attach proof.
• If you are claiming a deposit, quote the exact contract clause that controls release.
• If you are a subcontractor, attach proof of the chain of contracts and delivery or completion.

Examples to guide your drafting

• Judgment creditor: “I claim $22,450 plus interest at 5% per year from May 1, 2023, on the proceeds held from the sale of the debtor’s property. Basis: Provincial court judgment dated April 20, 2023, writ filed. Schedules A–C.”
• Subcontractor: “I claim $18,900 from progress funds held in trust by the owner’s lawyer. Basis: trust obligations under the construction contract, supported by lien filed on September 15, 2024, and invoices. Schedules A–D.”
• Buyer deposit: “I claim the return of the $25,000 deposit held by the brokerage. Basis: seller’s failure to satisfy financing condition, clause 4.3. Schedules A–B.”
• Tenant: “I claim $1,450 for return of my security deposit. Basis: tenancy ended November 30, 2024; no valid deductions. Schedules A–C.”

Common mistakes to avoid

• Missing deadlines stated in a notice inviting claims.
• Claiming the whole fund without showing how your debt ties to it.
• Skipping key attachments like the judgment or contract.
• Ignoring priority issues that obviously affect your claim.
• Forgetting to sign or to have a declaration sworn when required.
• Failing to serve other claimants when the process requires it.

What to expect after filing

• The holder reviews your claim for completeness.
• They may ask you or others for clarifications.
• They either pay you, propose a distribution, or seek a court order.
• If paid, you will receive funds as directed. You may need to sign a release.
• If the holder goes to court, your claim package becomes your evidence.

Final check before you submit

• Is your contact information current and correct?
• Does your amount claimed match your schedules and math?
• Are all schedules legible and labeled?
• Have you addressed priority, liens, and set-off?
• Have you met the stated deadline?

If you treat the Claim to Trust Money as a focused, evidence-backed notice, you make the holder’s job easy. Clear claims get faster results. Complete claims reduce the need for a court order. Your goal is simple: show that the money in this trust should be paid to you, and make it easy for the holder to say yes.

Legal Terms You Might Encounter

• You will see the word trust throughout the form. A trust is money held by someone for someone else. You ask the holder to release it to you. The holder must follow the rules and only pay the right person.
• The trustee is the person or organization holding the funds. This could be a law firm, agent, or court office. The form tells the trustee why you are entitled to payment and how to pay you.
• You may be called the beneficiary. That is the person who should receive the trust money. If you are claiming for a company, the company is the beneficiary. You must show you can act for the beneficiary.
• Stakeholder means a neutral party holding money until a dispute ends. If the holder is a stakeholder, they cannot choose sides. Your form must prove clear entitlement or show consent from others.
• Entitlement is the basis for paying you. It may come from a contract, invoice, settlement, court order, or statute. Your form must tie your entitlement to the exact trust amount.
• An assignment is when someone transfers their right to the money to you. If you rely on an assignment, include the signed assignment document. The form should match the names and amounts in that document.
• A release is your agreement to give up further claims once paid. Some trustees require a release when they pay out. If you sign one, make sure the description of the payment is exact.
• Indemnity means you promise to cover the trustee’s loss if a later claim arises. Some trustees need an indemnity before paying you. Read it carefully, and understand any continuing obligations.
• Interest may have accrued on the trust money. The form often asks about interest. State whether you claim it, waive it, or agree to a specific rate and period.
• Set‑off happens when the trustee or another party reduces what you get by what you owe. If set‑off applies, the form may show deductions. Confirm the math and source of the deduction.
• A statutory declaration or affidavit is a sworn statement of facts. You may need one if records are limited or there are multiple claimants. Make sure your statement is true and consistent with the form.
• Identification is proof of who you are. The trustee may require government photo ID. If you claim for a business, include proof of authority, such as corporate records or a resolution.
• Payment instructions tell the trustee how to pay you. This could be an electronic transfer, cheque, or draft. Double‑check account names, addresses, and numbers to avoid returns or delays.
• A court order is a judge’s direction about the funds. If an order controls distribution, attach a certified copy. Your form should mirror the order’s payee names, amounts, and timing.

FAQs

Do you need to include identification?

Yes. Include clear copies of valid government photo ID. The name must match the claimant on the form. If you claim for a business, add proof you can sign for it. Use current documents. Avoid expired ID or cropped images.

Do you need original documents or are copies fine?

It depends on the trustee’s policy. Many accept clear copies for routine items. They often require originals or certified copies for court orders, assignments, or releases. Ask the trustee before you send originals. Keep a full copy set for your records.

Do you have to notarize the form?

Not always. Routine claims often need only a signature and ID. You usually need a statutory declaration or notarized signature if there is a risk of competing claims. You also need it when records are incomplete. Check the signature block for specific witnessing requirements.

Do you need consent from other parties?

You do if the trust was created for multiple parties or the entitlement is shared. If there is a settlement, include the signed release or consent. If the form asks for co‑signatures, get them before filing. Missing consent causes delays or rejection.

Do you get interest on trust money?

Sometimes. It depends on the trust terms and how the money was held. If interest applies, show how you calculated it. State whether you claim it or waive it. If you waive interest, say so on the form. Keep your math simple and support it with statements if possible.

Do you need to provide banking information?

Yes, if you want electronic payment. Provide the account holder’s name exactly as on the account. Include the branch and account numbers and any required codes. For cheques, confirm the mailing address and payee name. Mismatched data causes failed payments.

Do you need to claim taxes or report income?

It depends on why you are receiving the money. Some payments are income; others are refunds or reimbursements. The trustee may ask you to confirm tax treatment for their records. Keep invoices and settlement details. Speak with a tax professional if you are unsure.

Do you need to use a specific form if there are multiple claimants?

Use the same form, but list each claimant and their share. Attach a schedule if the form lacks space. Have each claimant sign. Include ID for each claimant or a single authorized representative with proof of authority.

Do you need to wait if there is a dispute?

Yes. The trustee cannot pay until the dispute is resolved. Provide proof of resolution, such as a settlement or court order. If the dispute is minor, consider a joint direction signed by all parties. Without resolution, the trustee may hold the funds.

Do you need to follow up after filing?

Yes. Confirm receipt and completeness. Ask for the expected timeline. Provide any missing items promptly. Keep a log of dates, names, and requests. Follow up if the timeline slips without update.

Checklist: Before, During, and After the Claim to Trust Money

Before signing

• Verify the trustee’s requirements. Ask what proof and format they accept.
• Identify the legal basis for your claim: contract, invoice, settlement, or order.
• Gather proof of entitlement: signed agreements, invoices, receipts, or orders.
• Collect identification: current government photo ID. For businesses, add proof of authority.
• Confirm the exact trust amount and any interest with statements or ledger entries.
• Resolve outstanding disputes or get written consent from other parties.
• Prepare payment details: account name, numbers, and address for the payee.
• Decide on interest: claim it, waive it, or agree to a fixed amount.
• Obtain supporting documents: assignments, releases, or indemnities if needed.
• Check name consistency across all documents, including middle names and suffixes.

During signing

• Use the legal name of the claimant exactly as on ID or registration.
• Enter the trust reference number or file number exactly as provided by the trustee.
• State the specific amount claimed and the basis for that amount.
• Confirm whether you claim interest. If yes, include the rate and period or attach a statement.
• Complete payment instructions in full. Match the payee name to the claimant or authorized assignee.
• Review declarations and warranties. Ensure every statement is true and supported.
• If a witness or commissioner is needed, sign in their presence. Do not pre‑sign.
• If multiple claimants, ensure each signs and dates on the correct line.
• Attach all supporting documents, clearly labeled and readable.
• Number pages and schedules. Cross‑reference attachments in the form.

After signing

• Make a complete copy set for your records. Include ID and attachments.
• Submit the original form as required: in person, by mail, or electronically.
• Confirm receipt with the trustee. Ask for a reference or acknowledgment.
• Calendar the expected processing time. Note any follow‑up date.
• Respond quickly to any request for clarification or missing items.
• Update payment or address details promptly if they change before payout.
• When paid, request a payment confirmation or remittance advice.
• Store the file securely for at least the required record‑keeping period.
• If paid by cheque, deposit promptly. Avoid stale‑dating issues.
• If you need an amendment, prepare a short written correction and obtain signatures if required.

Common Mistakes to Avoid

• Don’t forget to match names exactly. Using a nickname or short form can cause rejection. The payee name must match ID and the trust records. If you assign payment to someone else, the assignment must also match.
• Don’t submit incomplete proof. Missing invoices, unsigned settlements, or unclear orders stall your claim. The trustee cannot guess your entitlement. Provide clean, legible copies and full signatures on key documents.
• Don’t ignore competing interests. If someone else might claim the funds, address it. Provide consent, a joint direction, or a final order. Without resolution, the trustee will hold the money or require additional assurances.
• Don’t make payment errors. Wrong account numbers, mismatched payee names, or outdated addresses trigger returned payments. Returns add fees and delays. Double‑check every digit and detail before submitting.
• Don’t overlook interest decisions. Forgetting to state whether you claim or waive interest creates confusion. The trustee may default to no interest or delay the payout. Say clearly what you want, and support the numbers.

What to Do After Filling Out the Form

1. File the form according to the trustee’s instructions. Some accept email with scans; others require originals. If originals are required, use reliable delivery with tracking. Keep a submission log with date, method, and recipient.
2. Confirm the trustee received everything. Ask whether the package is complete. If something is missing, send it quickly. Clarify whether they need certified copies or notarized statements.
3. Monitor the processing timeline. Typical review involves verifying identity, entitlement, and payment details. Ask when funds will be released. If the trustee needs third‑party consent, help coordinate it.
4. Prepare for possible verification calls. You may be asked to confirm identity or details by phone or email. Answer promptly. Avoid discussing new facts that are not in your documents. If something material has changed, provide a written update.
5. Handle amendments cleanly. If you must correct a name, amount, or payee, submit a short written amendment. Sign it. Include updated attachments if needed. Keep the amendment with your records.
6. Track the disbursement. For electronic payments, confirm the deposit date and amount. For cheques, note the tracking number and expected delivery date. If funds do not arrive, ask for proof of payment and any return notice.
7. Close out the file properly. Once paid, request a remittance advice or closing statement. Verify the final amount against your claim, including interest and any deductions. If there is a shortfall, raise it quickly with supporting documents.
8. Address tax and reporting. Determine whether the payment is income, a refund, or a trust distribution. Keep all backup. If needed, document interest received. Store everything for your accountant.
9. Return any unused or surplus funds if required. If you receive funds not intended for you, tell the trustee at once. Do not deposit or spend money you are not entitled to. Swift correction prevents larger problems.
10. Maintain records securely. Keep copies of the form, ID, attachments, communications, and payment confirmation. Store them in a safe place for the retention period you follow. Good records protect you if questions arise later.
11. If payment stalls, use an escalation path. Start with the contact handling your file. If needed, escalate to a supervisor. Provide a concise summary of dates, documents, and commitments. Be factual and polite. Continued disputes may require formal resolution steps.
12. If a dispute resurfaces after payment, review your release and indemnity. Check what you agreed to. Gather your complete file. Respond in writing with dates and documents. Consider whether you need professional advice, especially if a demand seeks repayment.
13. If funds cannot be paid due to unresolved issues, explore temporary alternatives. You might agree to a partial payout on undisputed amounts. You might consent to hold the balance pending proof. Make any temporary arrangement clear and in writing.
14. If the trustee asks for additional assurances, assess the request. They may need a fresh statutory declaration, a new consent, or updated ID. Provide only what is necessary and accurate. Keep your responses consistent with the original filing.
15. If you anticipate future claims, build clarity now. Use precise descriptions on the form. Identify what the payment covers and what it does not. Clear wording reduces later misunderstandings.