diff --git a/src/components/invoices/generate-invoice-dialog.tsx b/src/components/invoices/generate-invoice-dialog.tsx
index 0fa0f5e..e4ad656 100644
--- a/src/components/invoices/generate-invoice-dialog.tsx
+++ b/src/components/invoices/generate-invoice-dialog.tsx
@@ -41,6 +41,7 @@ export function GenerateInvoiceDialog({ open, onOpenChange, clientId, clientName
   const [taxPct, setTaxPct] = useState("0");
   const [dueDays, setDueDays] = useState("30");
   const [notes, setNotes] = useState("");
+  const [isRetainer, setIsRetainer] = useState(false);
   const [loading, setLoading] = useState(false);
   const [saving, setSaving] = useState(false);
 
@@ -104,9 +105,53 @@ export function GenerateInvoiceDialog({ open, onOpenChange, clientId, clientName
 
   const submit = async () => {
     if (!user?.id) return;
-    if (selectedIds.length === 0) return toast.error("Select at least one case");
+    if (selectedIds.length === 0 && !isRetainer) return toast.error("Select at least one case");
     setSaving(true);
     try {
+      if (isRetainer) {
+        // Retainer invoices have no time/expenses — create a single line item for the deposit.
+        const yr = new Date().getFullYear();
+        const num = `INV-${yr}-${Math.floor(1000 + Math.random() * 9000)}`;
+        const due = new Date();
+        due.setDate(due.getDate() + (Number(dueDays) || 30));
+        const amt = Math.max(0, Number((document.getElementById("retainer-amount") as HTMLInputElement)?.value) || 0);
+        if (amt <= 0) {
+          setSaving(false);
+          return toast.error("Enter a retainer amount");
+        }
+        const tax = +(amt * (Number(taxPct) || 0) / 100).toFixed(2);
+        const { data: inv, error: ie } = await supabase
+          .from("invoices")
+          .insert({
+            invoice_number: num,
+            client_id: clientId,
+            status: "draft",
+            issue_date: new Date().toISOString().slice(0, 10),
+            due_date: due.toISOString().slice(0, 10),
+            subtotal: amt,
+            tax,
+            total: +(amt + tax).toFixed(2),
+            notes: notes || "Retainer deposit",
+            is_retainer: true,
+            created_by: user.id,
+          })
+          .select("id, invoice_number")
+          .single();
+        if (ie || !inv) throw ie ?? new Error("Failed to create");
+        await supabase.from("invoice_line_items").insert({
+          invoice_id: inv.id,
+          kind: "manual",
+          description: "Retainer deposit into trust account",
+          quantity: 1,
+          rate: amt,
+          amount: amt,
+          sort_order: 0,
+        });
+        toast.success(`Retainer invoice ${inv.invoice_number} created`);
+        onOpenChange(false);
+        navigate({ to: "/invoices/$invoiceId", params: { invoiceId: inv.id } });
+        return;
+      }
       const { invoiceId, invoiceNumber } = await generateInvoiceForClient({
         clientId,
         caseIds: selectedIds,
@@ -132,39 +177,27 @@ export function GenerateInvoiceDialog({ open, onOpenChange, clientId, clientName
           <DialogTitle>Generate invoice — {clientName}</DialogTitle>
         </DialogHeader>
 
-        {loading ? (
-          <div className="py-8 text-center text-muted-foreground">Loading unbilled work…</div>
-        ) : cases.length === 0 ? (
-          <div className="py-8 text-center text-muted-foreground text-sm">
-            No unbilled time or expenses across this client's cases.
-          </div>
-        ) : (
-          <div className="space-y-4">
-            <div>
-              <Label className="text-xs uppercase tracking-wider text-muted-foreground">Cases to bill</Label>
-              <div className="mt-2 border rounded-md divide-y max-h-[260px] overflow-auto">
-                {cases.map((c) => (
-                  <label key={c.id} className="flex items-start gap-3 p-3 cursor-pointer hover:bg-muted/40">
-                    <Checkbox
-                      checked={!!selected[c.id]}
-                      onCheckedChange={(v) => setSelected((p) => ({ ...p, [c.id]: !!v }))}
-                      className="mt-0.5"
-                    />
-                    <div className="flex-1 min-w-0">
-                      <div className="flex items-center justify-between gap-2">
-                        <span className="font-medium text-sm truncate">{c.title}</span>
-                        <span className="text-sm tabular-nums font-medium">{formatCurrency(c.total)}</span>
-                      </div>
-                      <div className="text-xs text-muted-foreground">
-                        {c.case_number} · {c.timeCount} time entries ({formatCurrency(c.timeAmount)}) · {c.expenseCount} expenses ({formatCurrency(c.expenseAmount)})
-                      </div>
-                    </div>
-                  </label>
-                ))}
+        <div className="space-y-4">
+          <label className="flex items-start gap-3 p-3 rounded-md border cursor-pointer hover:bg-muted/40">
+            <Checkbox
+              checked={isRetainer}
+              onCheckedChange={(v) => setIsRetainer(!!v)}
+              className="mt-0.5"
+            />
+            <div className="flex-1">
+              <div className="text-sm font-medium">Retainer / trust deposit invoice</div>
+              <div className="text-xs text-muted-foreground">
+                When paid, the amount is automatically deposited into this client's trust account.
               </div>
             </div>
+          </label>
 
+          {isRetainer ? (
             <div className="grid grid-cols-3 gap-3">
+              <div>
+                <Label>Retainer amount</Label>
+                <Input id="retainer-amount" type="number" step="0.01" placeholder="0.00" />
+              </div>
               <div>
                 <Label>Tax rate (%)</Label>
                 <Input type="number" step="0.01" value={taxPct} onChange={(e) => setTaxPct(e.target.value)} />
@@ -173,27 +206,73 @@ export function GenerateInvoiceDialog({ open, onOpenChange, clientId, clientName
                 <Label>Due in (days)</Label>
                 <Input type="number" value={dueDays} onChange={(e) => setDueDays(e.target.value)} />
               </div>
-              <div className="col-span-1 flex items-end justify-end">
-                <div className="text-right">
-                  <div className="text-[10px] uppercase tracking-wider text-muted-foreground">Estimated total</div>
-                  <div className="font-serif text-xl">{formatCurrency(total)}</div>
-                  {tax > 0 && <div className="text-[11px] text-muted-foreground">{formatCurrency(subtotal)} + {formatCurrency(tax)} tax</div>}
+            </div>
+          ) : loading ? (
+            <div className="py-8 text-center text-muted-foreground">Loading unbilled work…</div>
+          ) : cases.length === 0 ? (
+            <div className="py-8 text-center text-muted-foreground text-sm">
+              No unbilled time or expenses across this client's cases.
+            </div>
+          ) : (
+            <>
+              <div>
+                <Label className="text-xs uppercase tracking-wider text-muted-foreground">Cases to bill</Label>
+                <div className="mt-2 border rounded-md divide-y max-h-[260px] overflow-auto">
+                  {cases.map((c) => (
+                    <label key={c.id} className="flex items-start gap-3 p-3 cursor-pointer hover:bg-muted/40">
+                      <Checkbox
+                        checked={!!selected[c.id]}
+                        onCheckedChange={(v) => setSelected((p) => ({ ...p, [c.id]: !!v }))}
+                        className="mt-0.5"
+                      />
+                      <div className="flex-1 min-w-0">
+                        <div className="flex items-center justify-between gap-2">
+                          <span className="font-medium text-sm truncate">{c.title}</span>
+                          <span className="text-sm tabular-nums font-medium">{formatCurrency(c.total)}</span>
+                        </div>
+                        <div className="text-xs text-muted-foreground">
+                          {c.case_number} · {c.timeCount} time entries ({formatCurrency(c.timeAmount)}) · {c.expenseCount} expenses ({formatCurrency(c.expenseAmount)})
+                        </div>
+                      </div>
+                    </label>
+                  ))}
                 </div>
               </div>
-            </div>
 
-            <div>
-              <Label>Notes (optional)</Label>
-              <Textarea rows={2} value={notes} onChange={(e) => setNotes(e.target.value)} placeholder="Payment terms, thank-you message…" />
-            </div>
+              <div className="grid grid-cols-3 gap-3">
+                <div>
+                  <Label>Tax rate (%)</Label>
+                  <Input type="number" step="0.01" value={taxPct} onChange={(e) => setTaxPct(e.target.value)} />
+                </div>
+                <div>
+                  <Label>Due in (days)</Label>
+                  <Input type="number" value={dueDays} onChange={(e) => setDueDays(e.target.value)} />
+                </div>
+                <div className="col-span-1 flex items-end justify-end">
+                  <div className="text-right">
+                    <div className="text-[10px] uppercase tracking-wider text-muted-foreground">Estimated total</div>
+                    <div className="font-serif text-xl">{formatCurrency(total)}</div>
+                    {tax > 0 && <div className="text-[11px] text-muted-foreground">{formatCurrency(subtotal)} + {formatCurrency(tax)} tax</div>}
+                  </div>
+                </div>
+              </div>
+            </>
+          )}
+
+          <div>
+            <Label>Notes (optional)</Label>
+            <Textarea rows={2} value={notes} onChange={(e) => setNotes(e.target.value)} placeholder="Payment terms, thank-you message…" />
           </div>
-        )}
+        </div>
 
         <DialogFooter>
           <Button variant="outline" onClick={() => onOpenChange(false)}>Cancel</Button>
-          <Button onClick={submit} disabled={saving || cases.length === 0 || selectedIds.length === 0}>
+          <Button
+            onClick={submit}
+            disabled={saving || (!isRetainer && (cases.length === 0 || selectedIds.length === 0))}
+          >
             {saving ? <Loader2 className="h-4 w-4 mr-2 animate-spin" /> : <FilePlus className="h-4 w-4 mr-2" />}
-            Generate draft invoice
+            {isRetainer ? "Create retainer invoice" : "Generate draft invoice"}
           </Button>
         </DialogFooter>
       </DialogContent>
diff --git a/src/components/trust/trust-account-panel.tsx b/src/components/trust/trust-account-panel.tsx
new file mode 100644
index 0000000..a46df08
--- /dev/null
+++ b/src/components/trust/trust-account-panel.tsx
@@ -0,0 +1,421 @@
+import { useEffect, useState, useCallback } from "react";
+import { Link } from "@tanstack/react-router";
+import { supabase } from "@/integrations/supabase/client";
+import { useAuth } from "@/lib/auth";
+import { Card, CardContent } from "@/components/ui/card";
+import { Button } from "@/components/ui/button";
+import { Input } from "@/components/ui/input";
+import { Label } from "@/components/ui/label";
+import { Textarea } from "@/components/ui/textarea";
+import {
+  Dialog,
+  DialogContent,
+  DialogHeader,
+  DialogTitle,
+  DialogFooter,
+} from "@/components/ui/dialog";
+import {
+  Select,
+  SelectContent,
+  SelectItem,
+  SelectTrigger,
+  SelectValue,
+} from "@/components/ui/select";
+import { Wallet, Plus, ArrowDownToLine, ArrowUpFromLine, Trash2, Loader2 } from "lucide-react";
+import { formatCurrency, formatDate } from "@/lib/format";
+import { toast } from "sonner";
+
+interface Entry {
+  id: string;
+  entry_date: string;
+  entry_type: "deposit" | "withdrawal";
+  amount: number;
+  note: string | null;
+  source_invoice_id: string | null;
+  applied_invoice_id: string | null;
+  created_by: string | null;
+}
+
+export function TrustAccountPanel({ clientId }: { clientId: string }) {
+  const { user, isAdmin } = useAuth();
+  const [entries, setEntries] = useState<Entry[]>([]);
+  const [loading, setLoading] = useState(true);
+  const [adjustOpen, setAdjustOpen] = useState<null | "deposit" | "withdrawal">(null);
+
+  const load = useCallback(async () => {
+    setLoading(true);
+    const { data } = await supabase
+      .from("trust_ledger_entries")
+      .select("*")
+      .eq("client_id", clientId)
+      .order("entry_date", { ascending: false })
+      .order("created_at", { ascending: false });
+    setEntries((data ?? []) as Entry[]);
+    setLoading(false);
+  }, [clientId]);
+
+  useEffect(() => {
+    load();
+    const ch = supabase
+      .channel(`trust-${clientId}`)
+      .on(
+        "postgres_changes",
+        { event: "*", schema: "public", table: "trust_ledger_entries", filter: `client_id=eq.${clientId}` },
+        () => load(),
+      )
+      .subscribe();
+    return () => {
+      supabase.removeChannel(ch);
+    };
+  }, [clientId, load]);
+
+  const balance = entries.reduce(
+    (sum, e) => sum + (e.entry_type === "deposit" ? Number(e.amount) : -Number(e.amount)),
+    0,
+  );
+
+  const removeEntry = async (id: string) => {
+    if (!confirm("Remove this trust ledger entry? This will not reverse the related invoice payment.")) return;
+    const { error } = await supabase.from("trust_ledger_entries").delete().eq("id", id);
+    if (error) return toast.error(error.message);
+    toast.success("Entry removed");
+    load();
+  };
+
+  return (
+    <Card className="border-border/60">
+      <CardContent className="p-5 space-y-4">
+        <div className="flex items-start justify-between gap-3">
+          <div className="flex items-center gap-2">
+            <Wallet className="h-4 w-4 text-muted-foreground" />
+            <h3 className="font-serif text-lg">Trust account</h3>
+          </div>
+          <div className="flex gap-1.5">
+            <Button size="sm" variant="outline" onClick={() => setAdjustOpen("deposit")}>
+              <Plus className="h-3.5 w-3.5 mr-1" /> Deposit
+            </Button>
+            <Button size="sm" variant="outline" onClick={() => setAdjustOpen("withdrawal")}>
+              <ArrowUpFromLine className="h-3.5 w-3.5 mr-1" /> Withdraw
+            </Button>
+          </div>
+        </div>
+
+        <div className="rounded-md bg-muted/40 p-4 flex items-baseline justify-between">
+          <span className="text-xs uppercase tracking-wider text-muted-foreground">Available balance</span>
+          <span
+            className={`font-serif text-2xl tabular-nums ${balance < 0 ? "text-destructive" : ""}`}
+          >
+            {formatCurrency(balance)}
+          </span>
+        </div>
+
+        <div>
+          <div className="text-xs uppercase tracking-wider text-muted-foreground mb-2">Ledger</div>
+          {loading ? (
+            <p className="text-sm text-muted-foreground">Loading…</p>
+          ) : entries.length === 0 ? (
+            <p className="text-sm text-muted-foreground italic">
+              No activity yet. Mark an invoice as a retainer and record payment to fund this account.
+            </p>
+          ) : (
+            <div className="divide-y">
+              {entries.map((e) => {
+                const isDeposit = e.entry_type === "deposit";
+                const link = isDeposit ? e.source_invoice_id : e.applied_invoice_id;
+                const canDelete = isAdmin || e.created_by === user?.id;
+                return (
+                  <div key={e.id} className="flex items-start justify-between gap-3 py-2.5 text-sm">
+                    <div className="flex items-start gap-2 min-w-0">
+                      <div
+                        className={`mt-0.5 h-6 w-6 rounded-full flex items-center justify-center ${
+                          isDeposit ? "bg-emerald-500/15 text-emerald-700 dark:text-emerald-400" : "bg-orange-500/15 text-orange-700 dark:text-orange-400"
+                        }`}
+                      >
+                        {isDeposit ? (
+                          <ArrowDownToLine className="h-3 w-3" />
+                        ) : (
+                          <ArrowUpFromLine className="h-3 w-3" />
+                        )}
+                      </div>
+                      <div className="min-w-0">
+                        <div className="font-medium">
+                          {isDeposit ? "Deposit" : "Withdrawal"}
+                          {e.note ? <span className="text-muted-foreground font-normal"> · {e.note}</span> : null}
+                        </div>
+                        <div className="text-[11px] text-muted-foreground">
+                          {formatDate(e.entry_date)}
+                          {link && (
+                            <>
+                              {" · "}
+                              <Link
+                                to="/invoices/$invoiceId"
+                                params={{ invoiceId: link }}
+                                className="hover:text-primary underline-offset-2 hover:underline"
+                              >
+                                {isDeposit ? "from invoice" : "to invoice"}
+                              </Link>
+                            </>
+                          )}
+                        </div>
+                      </div>
+                    </div>
+                    <div className="flex items-center gap-1 shrink-0">
+                      <span
+                        className={`tabular-nums font-medium ${isDeposit ? "text-emerald-700 dark:text-emerald-400" : "text-orange-700 dark:text-orange-400"}`}
+                      >
+                        {isDeposit ? "+" : "−"}
+                        {formatCurrency(e.amount)}
+                      </span>
+                      {canDelete && (
+                        <Button
+                          variant="ghost"
+                          size="icon"
+                          className="h-6 w-6 text-muted-foreground hover:text-destructive"
+                          onClick={() => removeEntry(e.id)}
+                        >
+                          <Trash2 className="h-3 w-3" />
+                        </Button>
+                      )}
+                    </div>
+                  </div>
+                );
+              })}
+            </div>
+          )}
+        </div>
+      </CardContent>
+
+      <ManualAdjustDialog
+        open={!!adjustOpen}
+        type={adjustOpen ?? "deposit"}
+        onOpenChange={(v) => !v && setAdjustOpen(null)}
+        clientId={clientId}
+        userId={user?.id ?? null}
+        balance={balance}
+        onSaved={load}
+      />
+    </Card>
+  );
+}
+
+function ManualAdjustDialog({
+  open,
+  type,
+  onOpenChange,
+  clientId,
+  userId,
+  balance,
+  onSaved,
+}: {
+  open: boolean;
+  type: "deposit" | "withdrawal";
+  onOpenChange: (b: boolean) => void;
+  clientId: string;
+  userId: string | null;
+  balance: number;
+  onSaved: () => void;
+}) {
+  const [amount, setAmount] = useState("");
+  const [date, setDate] = useState(new Date().toISOString().slice(0, 10));
+  const [note, setNote] = useState("");
+  const [saving, setSaving] = useState(false);
+
+  useEffect(() => {
+    if (open) {
+      setAmount("");
+      setDate(new Date().toISOString().slice(0, 10));
+      setNote("");
+    }
+  }, [open]);
+
+  const save = async () => {
+    const amt = Number(amount);
+    if (!amt || amt <= 0) return toast.error("Enter a valid amount");
+    if (type === "withdrawal" && amt > balance) {
+      if (!confirm(`This will overdraw the trust by ${formatCurrency(amt - balance)}. Continue?`)) return;
+    }
+    setSaving(true);
+    const { error } = await supabase.from("trust_ledger_entries").insert({
+      client_id: clientId,
+      entry_date: date,
+      entry_type: type,
+      amount: amt,
+      note: note || (type === "deposit" ? "Manual deposit" : "Manual withdrawal"),
+      created_by: userId,
+    });
+    setSaving(false);
+    if (error) return toast.error(error.message);
+    toast.success(type === "deposit" ? "Deposit recorded" : "Withdrawal recorded");
+    onOpenChange(false);
+    onSaved();
+  };
+
+  return (
+    <Dialog open={open} onOpenChange={onOpenChange}>
+      <DialogContent>
+        <DialogHeader>
+          <DialogTitle>{type === "deposit" ? "Record trust deposit" : "Record trust withdrawal"}</DialogTitle>
+        </DialogHeader>
+        <div className="space-y-3">
+          <div className="grid grid-cols-2 gap-3">
+            <div>
+              <Label>Amount</Label>
+              <Input type="number" step="0.01" value={amount} onChange={(e) => setAmount(e.target.value)} />
+            </div>
+            <div>
+              <Label>Date</Label>
+              <Input type="date" value={date} onChange={(e) => setDate(e.target.value)} />
+            </div>
+          </div>
+          <div>
+            <Label>Note</Label>
+            <Textarea rows={2} value={note} onChange={(e) => setNote(e.target.value)} placeholder="Optional memo" />
+          </div>
+          {type === "withdrawal" && (
+            <p className="text-xs text-muted-foreground">
+              Available balance: <span className="tabular-nums">{formatCurrency(balance)}</span>
+            </p>
+          )}
+        </div>
+        <DialogFooter>
+          <Button variant="outline" onClick={() => onOpenChange(false)}>Cancel</Button>
+          <Button onClick={save} disabled={saving}>
+            {saving && <Loader2 className="h-4 w-4 mr-2 animate-spin" />}Save
+          </Button>
+        </DialogFooter>
+      </DialogContent>
+    </Dialog>
+  );
+}
+
+/** Dialog used on an invoice detail page to apply trust funds toward its balance. */
+export function ApplyTrustDialog({
+  open,
+  onOpenChange,
+  clientId,
+  invoiceId,
+  invoiceNumber,
+  balanceDue,
+  userId,
+  onApplied,
+}: {
+  open: boolean;
+  onOpenChange: (b: boolean) => void;
+  clientId: string;
+  invoiceId: string;
+  invoiceNumber: string;
+  balanceDue: number;
+  userId: string | null;
+  onApplied: () => void;
+}) {
+  const [trustBalance, setTrustBalance] = useState<number | null>(null);
+  const [amount, setAmount] = useState("");
+  const [date, setDate] = useState(new Date().toISOString().slice(0, 10));
+  const [saving, setSaving] = useState(false);
+
+  useEffect(() => {
+    if (!open) return;
+    (async () => {
+      const { data } = await supabase
+        .from("trust_ledger_entries")
+        .select("entry_type, amount")
+        .eq("client_id", clientId);
+      const bal = (data ?? []).reduce(
+        (s: number, e: any) => s + (e.entry_type === "deposit" ? Number(e.amount) : -Number(e.amount)),
+        0,
+      );
+      setTrustBalance(bal);
+      const suggest = Math.min(bal, balanceDue);
+      setAmount(suggest > 0 ? suggest.toFixed(2) : "");
+      setDate(new Date().toISOString().slice(0, 10));
+    })();
+  }, [open, clientId, balanceDue]);
+
+  const apply = async () => {
+    const amt = Number(amount);
+    if (!amt || amt <= 0) return toast.error("Enter a valid amount");
+    if (amt > balanceDue) return toast.error("Amount exceeds invoice balance due");
+    if (trustBalance != null && amt > trustBalance) {
+      if (!confirm(`This will overdraw the trust by ${formatCurrency(amt - trustBalance)}. Continue?`)) return;
+    }
+    setSaving(true);
+    // 1) Record the invoice payment (the existing trigger keeps invoice totals in sync).
+    const { data: pay, error: payErr } = await supabase
+      .from("invoice_payments")
+      .insert({
+        invoice_id: invoiceId,
+        amount: amt,
+        paid_on: date,
+        method: "trust",
+        reference: `Trust transfer · ${invoiceNumber}`,
+        created_by: userId,
+      })
+      .select("id")
+      .single();
+    if (payErr || !pay) {
+      setSaving(false);
+      return toast.error(payErr?.message ?? "Could not record payment");
+    }
+    // 2) Add the matching trust ledger withdrawal pointing at this invoice.
+    const { error: ledErr } = await supabase.from("trust_ledger_entries").insert({
+      client_id: clientId,
+      entry_date: date,
+      entry_type: "withdrawal",
+      amount: amt,
+      note: `Applied to ${invoiceNumber}`,
+      applied_invoice_id: invoiceId,
+      applied_payment_id: pay.id,
+      created_by: userId,
+    });
+    setSaving(false);
+    if (ledErr) return toast.error(ledErr.message);
+    toast.success("Trust funds applied");
+    onOpenChange(false);
+    onApplied();
+  };
+
+  return (
+    <Dialog open={open} onOpenChange={onOpenChange}>
+      <DialogContent>
+        <DialogHeader>
+          <DialogTitle>Apply trust funds</DialogTitle>
+        </DialogHeader>
+        <div className="space-y-3">
+          <div className="rounded-md bg-muted/40 p-3 text-sm space-y-1">
+            <div className="flex justify-between">
+              <span className="text-muted-foreground">Trust balance</span>
+              <span className="tabular-nums font-medium">
+                {trustBalance == null ? "…" : formatCurrency(trustBalance)}
+              </span>
+            </div>
+            <div className="flex justify-between">
+              <span className="text-muted-foreground">Invoice balance due</span>
+              <span className="tabular-nums font-medium">{formatCurrency(balanceDue)}</span>
+            </div>
+          </div>
+          <div className="grid grid-cols-2 gap-3">
+            <div>
+              <Label>Amount to apply</Label>
+              <Input type="number" step="0.01" value={amount} onChange={(e) => setAmount(e.target.value)} />
+            </div>
+            <div>
+              <Label>Date</Label>
+              <Input type="date" value={date} onChange={(e) => setDate(e.target.value)} />
+            </div>
+          </div>
+          {trustBalance != null && Number(amount) > trustBalance && (
+            <p className="text-xs text-destructive">
+              This will overdraw the trust by {formatCurrency(Number(amount) - trustBalance)}.
+            </p>
+          )}
+        </div>
+        <DialogFooter>
+          <Button variant="outline" onClick={() => onOpenChange(false)}>Cancel</Button>
+          <Button onClick={apply} disabled={saving || !amount}>
+            {saving && <Loader2 className="h-4 w-4 mr-2 animate-spin" />}Apply funds
+          </Button>
+        </DialogFooter>
+      </DialogContent>
+    </Dialog>
+  );
+}
diff --git a/src/integrations/supabase/types.ts b/src/integrations/supabase/types.ts
index 1d0485f..c990442 100644
--- a/src/integrations/supabase/types.ts
+++ b/src/integrations/supabase/types.ts
@@ -1561,6 +1561,7 @@ export type Database = {
           due_date: string | null
           id: string
           invoice_number: string
+          is_retainer: boolean
           issue_date: string
           notes: string | null
           paid_at: string | null
@@ -1579,6 +1580,7 @@ export type Database = {
           due_date?: string | null
           id?: string
           invoice_number: string
+          is_retainer?: boolean
           issue_date?: string
           notes?: string | null
           paid_at?: string | null
@@ -1597,6 +1599,7 @@ export type Database = {
           due_date?: string | null
           id?: string
           invoice_number?: string
+          is_retainer?: boolean
           issue_date?: string
           notes?: string | null
           paid_at?: string | null
@@ -2287,6 +2290,90 @@ export type Database = {
           },
         ]
       }
+      trust_ledger_entries: {
+        Row: {
+          amount: number
+          applied_invoice_id: string | null
+          applied_payment_id: string | null
+          client_id: string
+          created_at: string
+          created_by: string | null
+          entry_date: string
+          entry_type: string
+          id: string
+          note: string | null
+          source_invoice_id: string | null
+          source_payment_id: string | null
+          updated_at: string
+        }
+        Insert: {
+          amount: number
+          applied_invoice_id?: string | null
+          applied_payment_id?: string | null
+          client_id: string
+          created_at?: string
+          created_by?: string | null
+          entry_date?: string
+          entry_type: string
+          id?: string
+          note?: string | null
+          source_invoice_id?: string | null
+          source_payment_id?: string | null
+          updated_at?: string
+        }
+        Update: {
+          amount?: number
+          applied_invoice_id?: string | null
+          applied_payment_id?: string | null
+          client_id?: string
+          created_at?: string
+          created_by?: string | null
+          entry_date?: string
+          entry_type?: string
+          id?: string
+          note?: string | null
+          source_invoice_id?: string | null
+          source_payment_id?: string | null
+          updated_at?: string
+        }
+        Relationships: [
+          {
+            foreignKeyName: "trust_ledger_entries_applied_invoice_id_fkey"
+            columns: ["applied_invoice_id"]
+            isOneToOne: false
+            referencedRelation: "invoices"
+            referencedColumns: ["id"]
+          },
+          {
+            foreignKeyName: "trust_ledger_entries_applied_payment_id_fkey"
+            columns: ["applied_payment_id"]
+            isOneToOne: false
+            referencedRelation: "invoice_payments"
+            referencedColumns: ["id"]
+          },
+          {
+            foreignKeyName: "trust_ledger_entries_client_id_fkey"
+            columns: ["client_id"]
+            isOneToOne: false
+            referencedRelation: "clients"
+            referencedColumns: ["id"]
+          },
+          {
+            foreignKeyName: "trust_ledger_entries_source_invoice_id_fkey"
+            columns: ["source_invoice_id"]
+            isOneToOne: false
+            referencedRelation: "invoices"
+            referencedColumns: ["id"]
+          },
+          {
+            foreignKeyName: "trust_ledger_entries_source_payment_id_fkey"
+            columns: ["source_payment_id"]
+            isOneToOne: false
+            referencedRelation: "invoice_payments"
+            referencedColumns: ["id"]
+          },
+        ]
+      }
       user_roles: {
         Row: {
           created_at: string
diff --git a/src/routes/clients.$clientId.tsx b/src/routes/clients.$clientId.tsx
index ae6435c..8e6a592 100644
--- a/src/routes/clients.$clientId.tsx
+++ b/src/routes/clients.$clientId.tsx
@@ -15,6 +15,7 @@ import { formatCurrency, formatDate, formatDateTime, statusBadgeClass } from "@/
 import { toast } from "sonner";
 import { downloadStatusReport } from "@/lib/status-pdf";
 import { GenerateInvoiceDialog } from "@/components/invoices/generate-invoice-dialog";
+import { TrustAccountPanel } from "@/components/trust/trust-account-panel";
 
 export const Route = createFileRoute("/clients/$clientId")({
   component: () => (
@@ -203,6 +204,8 @@ function ClientDetail() {
               </CardContent>
             </Card>
           )}
+
+          <TrustAccountPanel clientId={clientId} />
         </div>
 
         <Card className="border-border/60 h-fit">
diff --git a/src/routes/invoices.$invoiceId.tsx b/src/routes/invoices.$invoiceId.tsx
index 72ead90..1471ea7 100644
--- a/src/routes/invoices.$invoiceId.tsx
+++ b/src/routes/invoices.$invoiceId.tsx
@@ -12,10 +12,11 @@ import { Select, SelectContent, SelectItem, SelectTrigger, SelectValue } from "@
 import { Dialog, DialogContent, DialogHeader, DialogTitle, DialogFooter } from "@/components/ui/dialog";
 import { supabase } from "@/integrations/supabase/client";
 import { useAuth } from "@/lib/auth";
-import { ArrowLeft, FileDown, Plus, Trash2, Loader2, Send, Ban, CheckCircle2, DollarSign } from "lucide-react";
+import { ArrowLeft, FileDown, Plus, Trash2, Loader2, Send, Ban, CheckCircle2, DollarSign, Wallet } from "lucide-react";
 import { formatCurrency, formatDate, statusBadgeClass } from "@/lib/format";
 import { downloadInvoicePdf, type InvoicePdfInput } from "@/lib/invoice-pdf";
 import { recalcInvoiceTotals } from "@/lib/invoice-generation";
+import { ApplyTrustDialog } from "@/components/trust/trust-account-panel";
 import { toast } from "sonner";
 
 export const Route = createFileRoute("/invoices/$invoiceId")({
@@ -37,6 +38,7 @@ function InvoiceDetail() {
   const [loading, setLoading] = useState(true);
   const [savingItem, setSavingItem] = useState(false);
   const [payOpen, setPayOpen] = useState(false);
+  const [trustOpen, setTrustOpen] = useState(false);
 
   const load = async () => {
     setLoading(true);
@@ -269,6 +271,11 @@ function InvoiceDetail() {
           <div className="flex items-center gap-3 mb-1">
             <span className="text-xs uppercase tracking-widest text-muted-foreground">Invoice</span>
             <Badge variant="outline" className={statusBadgeClass(invoice.status)}>{invoice.status}</Badge>
+            {invoice.is_retainer && (
+              <Badge variant="outline" className="border-emerald-500/40 text-emerald-700 dark:text-emerald-400">
+                <Wallet className="h-3 w-3 mr-1" /> Retainer
+              </Badge>
+            )}
           </div>
           <h1 className="font-serif text-3xl">{invoice.invoice_number}</h1>
           <p className="text-sm text-muted-foreground mt-1">
@@ -290,6 +297,11 @@ function InvoiceDetail() {
           {canEdit && invoice.status !== "void" && invoice.status !== "paid" && (
             <Button variant="outline" onClick={() => setStatus("void")}><Ban className="h-4 w-4 mr-2" /> Void</Button>
           )}
+          {canEdit && balance > 0 && !invoice.is_retainer && (
+            <Button variant="outline" onClick={() => setTrustOpen(true)}>
+              <Wallet className="h-4 w-4 mr-2" /> Apply trust funds
+            </Button>
+          )}
           {canEdit && (
             <Button onClick={() => setPayOpen(true)}><DollarSign className="h-4 w-4 mr-2" /> Record payment</Button>
           )}
@@ -476,6 +488,19 @@ function InvoiceDetail() {
         userId={user?.id ?? ""}
         onSaved={load}
       />
+
+      {invoice.client?.id && (
+        <ApplyTrustDialog
+          open={trustOpen}
+          onOpenChange={setTrustOpen}
+          clientId={invoice.client.id}
+          invoiceId={invoiceId}
+          invoiceNumber={invoice.invoice_number}
+          balanceDue={balance}
+          userId={user?.id ?? null}
+          onApplied={load}
+        />
+      )}
     </PageContainer>
   );
 }
diff --git a/supabase/migrations/20260418010645_2ca5538f-221c-439d-8f12-54b0ce082083.sql b/supabase/migrations/20260418010645_2ca5538f-221c-439d-8f12-54b0ce082083.sql
new file mode 100644
index 0000000..eee168b
--- /dev/null
+++ b/supabase/migrations/20260418010645_2ca5538f-221c-439d-8f12-54b0ce082083.sql
@@ -0,0 +1,64 @@
+
+ALTER TABLE public.invoices ADD COLUMN IF NOT EXISTS is_retainer boolean NOT NULL DEFAULT false;
+
+CREATE TABLE IF NOT EXISTS public.trust_ledger_entries (
+  id uuid PRIMARY KEY DEFAULT gen_random_uuid(),
+  client_id uuid NOT NULL REFERENCES public.clients(id) ON DELETE CASCADE,
+  entry_date date NOT NULL DEFAULT CURRENT_DATE,
+  entry_type text NOT NULL CHECK (entry_type IN ('deposit', 'withdrawal')),
+  amount numeric NOT NULL CHECK (amount >= 0),
+  note text,
+  source_invoice_id uuid REFERENCES public.invoices(id) ON DELETE SET NULL,
+  applied_invoice_id uuid REFERENCES public.invoices(id) ON DELETE SET NULL,
+  source_payment_id uuid REFERENCES public.invoice_payments(id) ON DELETE SET NULL,
+  applied_payment_id uuid REFERENCES public.invoice_payments(id) ON DELETE SET NULL,
+  created_by uuid,
+  created_at timestamptz NOT NULL DEFAULT now(),
+  updated_at timestamptz NOT NULL DEFAULT now()
+);
+
+CREATE INDEX IF NOT EXISTS trust_ledger_client_idx ON public.trust_ledger_entries(client_id, entry_date DESC);
+
+ALTER TABLE public.trust_ledger_entries ENABLE ROW LEVEL SECURITY;
+
+CREATE POLICY trust_ledger_select ON public.trust_ledger_entries
+  FOR SELECT TO authenticated USING (true);
+
+CREATE POLICY trust_ledger_insert ON public.trust_ledger_entries
+  FOR INSERT TO authenticated WITH CHECK (auth.uid() IS NOT NULL);
+
+CREATE POLICY trust_ledger_delete ON public.trust_ledger_entries
+  FOR DELETE TO authenticated USING (public.is_admin(auth.uid()) OR created_by = auth.uid());
+
+CREATE TRIGGER trust_ledger_set_updated_at
+  BEFORE UPDATE ON public.trust_ledger_entries
+  FOR EACH ROW EXECUTE FUNCTION public.tg_set_updated_at();
+
+CREATE OR REPLACE FUNCTION public.tg_trust_deposit_from_payment()
+RETURNS trigger
+LANGUAGE plpgsql
+SECURITY DEFINER
+SET search_path = public
+AS $$
+DECLARE
+  v_client_id uuid;
+  v_is_retainer boolean;
+BEGIN
+  SELECT i.client_id, i.is_retainer INTO v_client_id, v_is_retainer
+  FROM public.invoices i WHERE i.id = NEW.invoice_id;
+
+  IF v_is_retainer IS TRUE AND v_client_id IS NOT NULL AND NEW.amount > 0 THEN
+    INSERT INTO public.trust_ledger_entries
+      (client_id, entry_date, entry_type, amount, note, source_invoice_id, source_payment_id, created_by)
+    VALUES
+      (v_client_id, NEW.paid_on, 'deposit', NEW.amount,
+       'Retainer payment', NEW.invoice_id, NEW.id, NEW.created_by);
+  END IF;
+  RETURN NEW;
+END;
+$$;
+
+DROP TRIGGER IF EXISTS trust_deposit_from_payment ON public.invoice_payments;
+CREATE TRIGGER trust_deposit_from_payment
+  AFTER INSERT ON public.invoice_payments
+  FOR EACH ROW EXECUTE FUNCTION public.tg_trust_deposit_from_payment();