Commingling


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Commingling

Combining things into one body.

The term commingling is most often applied to funds or assets. When a fiduciary, a person entrusted with the management of funds other than his or her own in trust, mixes trust money with that of others, the fiduciary is commingling funds and thereby breaching his or her fiduciary duty.

A member of a corporation's board of directors commingles funds when he or she mixes personal funds with the funds of the corporation. An attorney who commingles his or her money with money belonging to a client is violating the ethics of the legal profession.

commingling

n. the act of mixing the funds belonging to one party with those of another party, or, most importantly with funds held in trust for a another. Spouses or business partners may commingle without a problem, except that a spouse may thus risk turning separate property into community property (transmutation), and a business partner may have to account to the other. However, trustees, guardians, or lawyers holding client funds, must be careful not to commingle those funds with his/her own, since commingling is generally prohibited as a conflict of interest. Use of commingled funds for an investment, even though it benefits both the trustee and the beneficiary, is still improper. Inadvertent commingling or temporary commingling (say, upon receipt of a settlement check in which both the client and attorney have an interest) require prompt separation of funds and accounting to the client or beneficiary. To avoid commingling, trustees, lawyers, guardians and those responsible for another's funds set up trust accounts for funds of another.

References in periodicals archive ?
When commingling is absent, the party claiming that the property has been transformed from nonmarital to marital has the burden to establish that a gift was intended.
As a result, communities that adopt commingling typically see a 15 percent to 20 percent increase in the volume of recyclables collected, said Alex Cuyler, Eugene's solid waste and recycling analyst.
We are also pleased to announce a new strategic alliance with 5 Digit Plus that creates a major competitive differentiation of our commingling capabilities.
We are picking up commingling," sending it north to SP Recycling as well.
In light of the identification and sorting technology available, Fisher and Biddle don't see commingling of plastics as a hindrance.
With 30 facilities nationwide, PSI Group's commingling services complement Transcontinental Direct U.
Commingling risk is when funds belonging to an issuer may get combined with the insolvency estate of a defaulted party in a structured finance transaction.
These lawsuits have included In re Sconce/Lamb Cremation Cases, in which the California Supreme Court upheld the right of close family members of decedents to assert emotional distress and related tort and contract claims for decedents whose remains were allegedly subjected to illegal and/or disrespectful multiple cremations and commingling, and In re Neptune Society Cases, a class action involving claims for emotional distress, personal injury, breach of contract, and consumer fraud claims arising from concealed illegal dumping of commingled human remains by the pilot who had been hired to scatter ashes separately over the Sierra Mountains.
Adelstein believes the coupling of Microsoft Outlook and Exchange closely resembles the commingling model analysts complain allows Microsoft to maintain an unfair competitive edge in other market areas.
Brigham anticipates the commingling of productive intervals and production to sales by late March or early April.
However, the resulting reduction in access to the unsecured commercial paper market will increase the volume of auto-related asset-backed term deals while activating a commingling trigger built into the transactions, said Paul Kelly, managing director of ABS Consumer Assets at Standard & Poor's.