Does a client trust account earn interest?

Yes. IOLTA accounts earn interest for the state program, and separate interest-bearing accounts earn interest for the client.

Can a client ask for their money to earn interest?

Yes. If the amount and holding time are large enough to earn net interest, the lawyer should use a separate interest-bearing account. In BC, clients have to ask for it.

Are IOLTA rules the same in every state?

No. Every state has an IOLTA program, but rules on approved banks, reporting, and when IOLTA is required vary. Check your state's program.

Can bank fees or card processing fees come out of a trust account?

Usually not from client funds. Most firms pay these from the operating account. Check your state's rules on which fees, if any, can be charged to IOLTA.

Is IOLA the same as IOLTA?

Yes. IOLA is the name New York uses for its program. It works the same way.

Who Gets the Interest on a Law Firm Trust Account?

Q: Who gets the interest on a law firm trust account?

The state IOLTA program gets interest on pooled IOLTA accounts. The client gets interest on a separate interest-bearing trust account. The firm never keeps it.

Interest on a law firm trust account goes to the state IOLTA program or to the client, never the firm. Learn how to choose the account, record interest, and handle tax.