Regulatory
IOLTA
Interest on Lawyers Trust Accounts, a program in which client funds held in trust by attorneys are deposited into pooled interest-bearing accounts, with the interest directed to fund legal aid and other charitable purposes. IOLTA accounts are subject to strict state bar rules regarding segregation, record-keeping, and disbursement, and mishandling of IOLTA funds is a common source of both malpractice claims and disciplinary proceedings.
Related terms
Trust AccountA separate bank account maintained by a law firm to hold client funds, settlement proceeds, and othe...Fiduciary DutyThe highest standard of care imposed by law, requiring an attorney to act in the best interest of th...Conflict of InterestA situation in which an attorney's duties to one client, a former client, or the attorney's own inte...