What should happen to all deposits in a broker's inactive trust account?

The correct answer highlights the essential duty of a broker to manage funds in trust accounts with a high standard of care. When a broker has an inactive trust account, it means that the account is not currently being used for ongoing transactions or business activities. Under these circumstances, the appropriate action is to ensure that any deposits held in that account are returned to their rightful owners as soon as possible. This reflects the broker's obligation to safeguard client funds and maintain transparency in financial dealings.

Keeping deposits in an inactive account without returning them can lead to numerous complications, including potential legal ramifications, loss of trust, and violation of fiduciary responsibilities. Brokers must adhere to the principle that client funds are not to be used for any unrelated purpose or kept unnecessarily, emphasizing the need to act with integrity and diligence in managing other people's money.

Thus, returning the deposits promptly not only fulfills the broker's legal and ethical obligations but also aligns with best practices in real estate management.