What must happen to a trust account when a brokerage closes in Indiana?

When a brokerage closes in Indiana, the correct procedure for handling a trust account involves returning the funds to their respective owners. This is crucial because trust accounts hold clients' and customers' funds that must be kept separate from the broker's own operating funds. The fiduciary responsibility of the brokerage dictates that these funds are to be returned to those who rightfully own them.

Returning the funds ensures compliance with legal and ethical standards set forth by the Indiana Real Estate Commission, protecting both the clients and the integrity of the real estate profession. This process helps to maintain trust in the real estate industry and assures clients that their finances are handled responsibly.

The other options present outcomes that do not align with the legal requirements governing trust accounts. Donating funds to charity or confiscating them would violate the obligation of the brokerage to safeguard clients’ money, while transferring them to another agency without returning them could compromise the ownership rights of the original clients. Thus, the correct action is to return the funds to their respective owners when a brokerage closes.