Frequently Asked Questions – Attorneys
Q: What are attorneys’ responsibilities under the IOLTA rules if they
do not handle client trust funds?
A: Licensed attorneys in Texas who do NOT handle client trust funds are not required
to establish an IOLTA account. However, such attorneys are required to advise the
Texas Access to Justice Foundation during the annual IOLTA compliance process that
they do not handle client trust funds.
Q: Where do attorneys deposit client trust funds that do not meet the short-term
or nominal fund requirements of IOLTA?
A: Client trust funds that do not meet the nominal or short-term fund requirements
of an IOLTA account should be deposited in a separate demand account to earn interest
for the benefit of that client. The attorney must use that client’s tax I.D.
number instead of the Foundation’s tax I.D.
Q: Do attorneys have to pay for service charges on IOLTA accounts?
A: Allowable reasonable fees are the only fees and service charges that may be deducted
by an eligible institution from interest earned on an IOLTA account. Allowable reasonable
fees may be deducted from interest or dividends on an IOLTA account only at the
rates and in accordance with the customary practices of the eligible institution
for non-IOLTA customers. No fees or service charges other than allowable reasonable
fees may be assessed against the accrued interest or dividends on an IOLTA account.
Any fees and service charges other than allowable reasonable fees shall be the sole
responsibility of, and may only be charged to, the attorney or law firm maintaining
the IOLTA account.
Q: Does the IOLTA program pay for the checks, deposit slips and other related
fees on the client trust accounts?
A: No. The Foundation will pay reasonable service charges on the IOLTA account.
However, the Foundation does not pay for checks, wire transfers or other business
expenses associated with the account.
Q: What do attorneys or law firms have to do to open an IOLTA account?
A: The attorney or law firm must take the IOLTA
Notice to Financial Institution to the financial institution in which the
IOLTA account will be opened. This form instructs the financial institution how
to establish an IOLTA account. Once the account is opened, the financial institution
must complete the form. The attorney, law firm or bank must then mail or fax a copy
of the completed form to the Texas Access to Justice Foundation. For more information,
please see How to Open an IOLTA account.
May 16, 2013
Fort Bend County Banks Receive Prime Partners in Justice Award
April 21-27, 2013
TAJF Recognizes National Crime Victims' Week
April 24, 2013
Justice Gala Raises More Than $338,000 for Legal Services to Veterans
April 3, 2013
Deadline for veteran grant applications extended to May 1
Public Welfare Foundation issues report "Natural Allies: Philanthropy and Civil
March 29, 2013
Children should have a voice in termination cases
March 27, 2013
Legal Aid Needs Unmet
- San Antonio Express News
March 1, 2013
IOLTA Program Find New Funding to Support Legal Services
March 1, 2013
Statement from TAJF Chair on Sequester Funding Cuts to Legal Aid
February 20, 2013
Legal Aid Funding Shortfall & Legislative Solutions Announced
February 20, 2013
New report on economic impact of legal aid released today
February 18, 2013
Press Conference to Held Feb. 20 at the Capitol
December 21, 2012
FDIC Insurance Coverage May Change Jan. 1 for IOLTA Accounts
December 19, 2012
Rep. Elliott Naishtat honored with Legislative Hero Award
December 11, 2012
Earns Prestigious National Award
December 6, 2012
Important Info for Attorneys Who Accept Credit Card Payments
now on Twitter, @TxAccessJustice
November 29, 2012
The National Banks of Central Texas join the Prime Partner Program
November 9, 2012
Letter to the Editor: Honoring Veterans
November 5, 2012
November is Prime Prime Partner Bank Month!
November 1, 2012
Carol M. Barger Appointed to TAJF Board