OMVIC Practice Test

Deposits over what amount must be kept in a trust account?

1. $1,000

2. $10,000

3. $5,000

4. No amount of deposit needs to be placed in a trust account

The correct answer is: $10,000

A trust account is a legal designation for separate bank accounts that are used by both the trustee and the beneficiary. The trustee is the receiver of the items in the trust, while the beneficiary is the person who receives the benefits of the items held in the trust. Deposits over $10,000 must be kept in a trust account because this amount reflects a significant sum of money that requires extra attention and care to manage and allocate properly. Deposits under $10,000 can be kept in a regular bank account since the amount is not considered large enough to require special handling. Choice A is incorrect because $1,000 is a much lower amount than $10,000 and would not necessitate the use of a trust account. Similarly, choice C is incorrect because $5,000 is also lower than $10,000. Choice D is incorrect because there is an amount specified for deposits that must be kept in a trust account, so there is a limit for how much can be kept in a regular bank account.