Commingling is basically the mixing of funds. The mixture of funds which belong to one party with the other party is known as commingling. The word commingling came from commingle which means mixed up. Legally it is used in the laws of trust where one party mixed the funds with the other party.
These are mostly the mixture of funds used by the lawyers. Oftentimes lawyers commingle the funds of their clients with those of other clients. The mixture of funds i.e. giving one’s funds to another who is not the fiduciary owner of that has very serious impacts within the law. It can be sometimes an illegal act of mixing clients funds with their own funds.