It is clear that many attorneys do not have even the most basic understanding of what an IOLTA account is. Misuse of IOLTA is an element in many inquiries and complaints brought by Disciplinary Counsel and in legal malpractice actions. Attorneys frequently do not know how IOLTA accounts work, what funds must go into an IOLTA account, and what funds must not go into an IOLTA account. Attorneys are also frequently unaware of their obligations with respect maintaining a ledger of the IOLTA accounts and performing monthly reconciliations.

What Is IOLTA?

IOLTA is an acronym of Interest on Lawyers’ Trust Accounts. IOLTA programs are designed to provide access to justice for individuals and families living in poverty without cost to the public, lawyers, or their clients. IOLTA programs allow interest from lawyer trust accounts to be pooled to provide civil legal aid to the poor and support improvements to the justice system. According to the National Association of IOLTA programs, IOLTA programs originated in Canada and Australia in the late 1960s to early 1970s. The first IOLTA program in the United States was launched by the Florida Bar Association in 1981. Currently, there are IOLTA programs in all 50 states, the District of Columbia and the U.S. Virgin Islands. IOLTA participation is mandatory in 44 of those jurisdictions.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]