|
Trust Accounts
Attorneys routinely receive client funds, such as unearned retainers or settlements,
which they place in financial instituions. Since the funds are being held for the
benefit of the client, attorneys must place these funds in an account separate from
their general operating account or any personal account.
Client trust accounts:
1. If the client funds will generate interest income sufficient to offset the expense
of investing them in a separate account for the client (large sums of money or funds
to be held for a long period of time), the attorney should invest the funds for
the client. The same principle applies if the bank offers, and an attorney chooses
to utilize, a sub-accounting product that creates separate interest-generating accounts
for individual clients that are tied to one master account. The following diagram
illustrates this basic concept.
2. In 1984, the Supreme Court of Texas set up the Interest on Lawyers’ Trust
Accounts (IOLTA) Program to allow attorneys to pool short-term and nominal deposits
into one account with the interest paid to the Texas Access to Justice Foundation.
As of July 1, 1989, all Texas attorneys who handle qualifying client funds must
establish an IOLTA account.
Determine if you need an IOLTA account.
|
Recent News
May 5, 2008
Submit your mandatory IOLTA
compliance online beginning May 7
May 2, 2008
Make a $100 contribution to legal aid when you pay
your State Bar of Texas dues
April 14, 2008
Legal Needs of FLDS Compound Residents Will Swamp Legal Aid
Donate to help
with FLDS legal assistance.
FLDS pro bono attorney reimbursement form.
More news
|