Interest on Lawyers’ Trust Accounts (IOLTA)
Interest on Lawyers’ Trust Accounts (IOLTA) is a method of raising funds to increase access to justice for low-income individuals, provide civil legal aid to the poor, promote public understanding of the law, and improve our justice system.
When a lawyer receives funds that belong to a client or a third party, the lawyer must hold those funds in a trust account and keep them separate from the lawyer’s funds. When funds held in trust would not be expected to earn more income than the cost of holding them, they may be deposited in an IOLTA account; the pooled interest goes to the IOLTA program.
Quick context
- All 50 states, DC, and the U.S. Virgin Islands operate IOLTA programs.
- In 1984, the Washington Supreme Court created LFW to manage the IOLTA program.
- In Washington, IOLTA ensures compliance and funds civil legal aid.
- IOLTA revenue depends on national interest rates and economic activity.