Managing an IOLTA Account

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The North Carolina State Bar regulates the trust account practices of North Carolina lawyers. Rule 1.15 of the Rules of Professional Conduct pertains to the safekeeping of client funds in a trust account, including IOLTA accounts.

The North Carolina State Bar’s Trust Account Handbook explains requirements for segregating, safekeeping, and record keeping client funds on deposit in a lawyer’s trust accounts held by a lawyer. The Handbook also answers questions about establishing a trust account, deposits and disbursements from a trust account, and the State Bar’s random audit program.

Disclaimer

The handbook contains legal information, not legal advice. While the State Bar will make every effort to update the manual as necessary, it is the responsibility of the member to make sure that they are following the most current version of the Rules of Professional Conduct. Nothing contained in the handbook is intended to address any specific inquiry, nor is it a substitute for independent legal research to original sources or for obtaining the advice of legal counsel with respect to legal problems.

View Handbook

Disclaimer

The handbook contains legal information, not legal advice. While the State Bar will make every effort to update the manual as necessary, it is the responsibility of the member to make sure that they are following the most current version of the Rules of Professional Conduct. Nothing contained in the handbook is intended to address any specific inquiry, nor is it a substitute for independent legal research to original sources or for obtaining the advice of legal counsel with respect to legal problems.

Service Charges

Eligible Banks may elect to waive any or all service charges on IOLTA accounts. Certain allowable reasonable service charges may be assessed but only against interest earned on the IOLTA account. Banks that have agreed to waive service charges that could be assessed against IOLTA interest are noted on the Eligible Bank List. See NC IOLTA Rule .1316(e).

All service charges other than those service charges which the banks are allowed to assess against an IOLTA account are the responsibility of and shall be paid by the lawyer or law firm. These charges may be deducted from the firm’s operating account, billed to the firm, or deducted from funds maintained or deposited by the lawyer in the IOLTA account for that purpose. Business costs or costs billable to others are the responsibility of the law firm and should not be charged against client funds in the account or against the interest or the earnings credit of an IOLTA account. Examples of such costs include but are not limited to check printing, NSF/OD fees, stop payment orders, wire transfer fees, account reconciliation, remote capture capability, online banking, digital imaging, CD Rom statements, or interest charged on uncollected balances (float).