Client Trust Accounts and IOLTA

Attorneys often handle their clients’ money, settlement checks, for example, or advance payments for court costs or other expenses. Any lawyer who handles client funds that are too small in amount or held too briefly to earn interest for the client must participate in the Interest on Lawyers’ Trust Account (IOLTA) program. Such IOLTA accounts can only be kept at approved financial institutions. 

If there is a large sum of money involved, or it will be held for a long time, an attorney can hold the client's funds in an individual account, designated as a Client Trust Account, and the interest earned will go to the client. 

The interest earned from pooled IOLTA accounts benefit nearly 100 nonprofit legal service organizations throughout California. IOLTA increases access to justice for individuals and families living in poverty and improves our justice system.