Partner with a Private Banker for Your IOLTA Needs

An Interest on Lawyers’ Trust Account (IOLTA) is a type of trust account used by attorneys to hold client funds that are either too small in amount or held for too short a period to generate interest for the individual client. Instead of the interest benefiting the client, the interest is pooled and directed toward funding public interest legal services and access to justice initiatives. An IOLTA is mandated or permitted in all 50 U.S. states and regulated by state bar associations or similar authorities.

When a lawyer receives client funds, such as retainers or settlement proceeds, ethical rules require that those funds be kept separate from the lawyer’s own. An IOLTA allows attorneys to comply with this requirement while contributing to their respective states’ IOLTA, which is a significant source of funding for programs that provide civil legal services for those living in poverty.

Establishing an IOLTA is important for several reasons. First, it ensures compliance with ethical obligations and trust accounting rules, protecting both the attorney and client from mismanagement or commingling of funds. Second, it supports vital legal aid programs that assist low-income individuals with housing, domestic violence, immigration, and other civil legal matters. These programs often rely heavily on IOLTA-generated funds.

An IOLTA is both a legal requirement and a valuable tool for supporting justice, making its establishment a critical step for any practicing attorney.

Private Bankers are financial professionals specializing in personalized banking services for high-net-worth individuals, businesses, and professionals, including attorneys. They can help identify which client funds qualify for an IOLTA, and which require separate trust accounts. They also assist with selecting the appropriate account structure, ensuring that the account is labeled and appropriately tracked as a trust account.

Partnering with a Private Banker allows attorneys to focus more on serving their clients and less on the complexities of managing client funds. The banker’s expertise ensures compliance and peace of mind, knowing that the attorney’s trust accounts are being managed professionally and precisely. This partnership is especially valuable for solo practitioners and small firms without dedicated financial teams. Ultimately, collaborating with a Private Banker makes the establishment and maintenance of an IOLTA more efficient, secure, and aligned with ethical standards.

If you’re looking to establish an IOLTA and want to ensure it’s set up correctly, now is the time to act! Reach out to an advisor today at 888.988.4510.