Every state has an IOLTA program, but whether or not it is mandatory varies from state to state. Many of the guidelines for IOLTA accounts are standards set by the American Bar Association and are closely followed by state bar associations.
There are differences in each state’s rules and statutes, however, as they are allowed to decide when, how, and where IOLTA accounts should be managed. Record keeping for IOLTA accounts for each varies, as does the way certain funds and deposits need to be handled. For example, some states require flat fee deposits to be placed into the trust account while others do not.
It’s important to make sure to read and thoroughly understand the rules of the bar association in your jurisdiction. Each state has a site dedicated to listing the full rules and regulations associated with establishing and maintaining a trust account. The American Bar Association keeps a current, running list of these state sites.
Sign up now to get more tips and news from CosmoLex
- 5 Ways CosmoLex Can Help Organize Your Practice (33:23)
- What Should Our Law Firm Client Intake Process Look Like?
- How can our law firm automate document creation?
- Revitalizing Your Law Firm: Selecting the Best Practice Management Software (26:57)
- Revitalizing Your Law Office: How to Migrate to Modern Practice Management Software (29:16)