Attorneys routinely receive client funds, such as unearned retainers or settlements, which they place in financial institutions. 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.
March 3, 2017
Feb. 17, 2017
Student Loan Repayment Assistance Program application process opens- Deadline March 27
Dec. 4, 2016
TAJF: Your Return on Investment - A year-end snapshot
Nov. 4, 2016
Oct. 25, 2016
Sept. 19, 2016
Sept. 14, 2016
Aug. 22, 2016
Aug. 10, 2016
July 8, 2016
Help for sexual assault survivors - Corpus Christi Caller-Times
July 8, 2016
One reason so many veterans are homeless? They can't afford lawyers. - Washington Post
June 6, 2016
Investing in Justice: Legal Aid for Survivors of Sexual Assault. - Philanthropy Southwest
May 19, 2016
May 18, 2016
May 9, 2016
Rape survivors on a mission to help others... - Dallas Morning News
Apr. 6, 2016
Feb. 22, 2016
Dec. 16, 2015
Nov. 17, 2015