Opening an IOLTA Account

IOLTA accounts are interest-bearing general trust accounts, from which banks forward the interest to the State Bar’s IOLTA program. The NC IOLTA program uses the money to fund legal-related charitable causes. All general client trust accounts of a North Carolina lawyer or law firm must be IOLTA accounts.

The following accounts should NOT be established as IOLTA accounts:

Dedicated trust accounts (interest-bearing accounts maintained for the sole benefit of a single client or transaction).
Operating accounts of the law firm.

Where you bank matters to NC IOLTA’s mission. Prime Partner Banks go above and beyond the basic eligibility requirements, bringing in more funds to increase access to critically needed legal aid for low-income North Carolinians. Find a Prime Partner Bank.

Opening an IOLTA Account

Find an Eligible Bank

All NC IOLTA accounts must be held at banks on the NC IOLTA Eligible Bank List. If you have questions about a bank’s policies or would like to inquire about a bank joining the Eligible Bank List, contact NC IOLTA at 919-828-0477.

FIND A PARTNER BANK

Setting Up Your IOLTA Account

Correctly Name the Account

The IOLTA account name should clearly identify the lawyer/law firm as the owner of the account. Lawyers can use identifying names on their accounts and checks. For example, an appropriate title for a general trust account might be “The Trust Account of John Smith, Attorney,” “Smith, Jones & Williams Real Estate Trust Account” or “Smith, Jones & Williams IOLTA Account.”

Use NC IOLTA’s Tax ID

NC IOLTA accounts should use NC IOLTA’s tax ID number. Please contact the NC IOLTA office for the tax ID number.

Complete the Bank Directive

The Bank Directive on NSF Trust Checks is required by the NC State Bar for all lawyer trust accounts, including IOLTA accounts. The NSF form can be found on the State Bar’s website. A copy of this form should be submitted to the bank and maintained by the law firm.

Notify NC IOLTA

While lawyers do not need prior authorization from NC IOLTA in order to open IOLTA accounts, they must notify NC IOLTA once the account has been established. Notification can be made electronically through the North Carolina State Bar Member Portal or by submitting the NC IOLTA Information Update Form. Account closings, changes in employment, and updated contact information should also be reported.

Keep in Mind:

The rules governing lawyer conduct prohibit a lawyer from benefiting from funds held or managed on behalf of clients. See 27 NCAC 2 1.15-2(j).
No trust account, whether it is IOLTA or not, can be linked to an operating account to utilize the collected trust account balances to offset charges or fees attributable to operating accounts (see NC State Bar RPC 150).

Contact the NC IOLTA staff if you have any questions about opening an IOLTA account.