What is IOLTA?

IOLTA is an acronym for Interest on Lawyers' Trust Accounts. Attorneys routinely receive funds to be held in trust for future use. Funds of a substantial amount or that are to be held for a long period of time are usually placed in an interest-bearing account for the individual client's benefit. If funds are small in amount or to be held for a short period of time, they are usually commingled in a non-interest-bearing checking account. This is done because the interest generated by these funds would not be enough to benefit the individual client.

The IOLTA program, authorized by the Utah Supreme Court in 1983, allows attorneys to hold interest-bearing accounts. The interest from these accounts is remitted at least quarterly to the Utah Bar Foundation, a charitable, tax-exempt entity.

Common Questions

Learn how to comply with IOLTA rule or open an IOLTA account