Choosing a paymaster attorney is mostly about one thing: confidence that the money you send will be held safely and paid exactly as agreed. The questions below help you test that before any funds move. A careful attorney will be glad you asked them.
1. Is the attorney licensed, and where?
Ask for the attorney's full name and bar number, then check it yourself. For a California attorney, the State Bar of California licensee search shows whether the license is active and whether there is any public discipline. Do not rely on a certificate sent by email.
2. Whose trust account will hold the funds?
The funds should go to the law firm's own client trust account, in the firm's name, at a bank. Be cautious if you are asked to wire to an individual, a different company, or an account in a third country. See IOLTA trust accounts explained for how these accounts work.
3. Who is the attorney's client?
An attorney paymaster acts for a client under a written agreement. Ask who that client is and what the attorney's duties are to everyone else. If you are not the client, consider having your own lawyer review the documents.
4. Is there a written agreement?
Every engagement should have a signed Paymaster Agreement or escrow agreement that names the parties, describes the transaction, states the fee, and sets out exactly when and to whom the money is paid. Verbal promises are not enough.
5. How does the attorney verify the parties?
A responsible paymaster asks for identification, company documents, proof of address, bank statements and a source of funds declaration, and screens every name against U.S. sanctions lists. If an attorney asks for nothing, that is a warning sign, not a convenience. Our article on Know Your Client explains why.
6. How are wire instructions confirmed?
Wire fraud is the most common way money is lost in these deals. Ask how the attorney gives trust account details and how payee bank details are confirmed. The safe answer is: by telephone, at a number already known, and never changed by email alone.
7. What exactly triggers payment?
The agreement should state a clear release condition, such as cleared funds plus signed payment instructions, or a written release from both sides. Vague conditions cause disputes. See writing clear release conditions.
8. What does it cost, and who pays?
Fees should be stated in writing before any money is received, including who pays them and when they are deducted. Ask about bank wire charges too.
9. What will the attorney not do?
A careful paymaster will tell you plainly what is outside the role: for example, not guaranteeing that a deal closes, not verifying the goods, not issuing bank instruments or comfort letters, and not handling cryptocurrency or cash. Clear limits protect everyone.
10. What happens if the deal fails?
Ask how and when funds are returned, and what happens if the parties disagree. The answer should be in the agreement. Our article What happens to the money if a deal falls apart covers this.
Next step
If you would like to discuss a transaction, contact the attorney directly. You will get straight answers to every question above before you decide.