What is IOLTA?

Lawyers who handle money for their clients must participate in the Interest on Lawyers’ Trust Accounts (IOLTA) Program, by depositing these funds into an IOLTA bank account at an eligible institution.  

The Supreme Court of Texas established IOTLA  as a mechanism for funding legal aid for low-income Texans by collecting interest on client trust accounts in 1984. Through the Texas IOLTA Program, attorneys voluntarily pooled the interest earned on trust accounts to provide civil legal services to the poor. The same year, the Court created the Texas Access to Justice Foundation, a nonprofit corporation, to administer the program, including the collection and granting of IOLTA funds.

The voluntary IOLTA Program generated $500,000 for grants during 1987-88. In 1989, participation in the IOLTA Program became mandatory for Texas attorneys. The program in Texas generates millions yearly without taxing the public and at no cost to lawyers or their clients. Only client funds that are nominal or held for a short period of time may be deposited into IOLTA accounts.

The interest on the IOLTA accounts is remitted to the Foundation, which grants the money to nonprofit organizations that provide free civil aid to low-income Texans.

The Rules Governing the Operation of the Texas Access to Justice Foundation, adopted by the Supreme Court of Texas in 1988, prohibit the use of IOLTA funds to directly fund class action suits, lawsuits against governmental entities, or lobbying for or against political candidates or issues.

All 50 states and the District of Columbia have approved IOLTA programs. In Australia and Canada, where the IOLTA concept originated, the programs have been operating since the 1960s.  For more information about IOLTA at the national level, visit www.iolta.org.

See also:


Recent News

 

October 31, 2023

TAJF honors contributions to access to justice at luncheon with Supreme Court

October 10, 2023

TAJF adds Aranda to board of directors; Hon. Deborah Hankinson reappointed as chair, Torrence reappointed 

July 13, 2023

Cendera Bank Joines Prime Partner Bank Program

June 12, 2023

TAJF Sponsors Five Equal Justice Works Fellows

June 1, 2023

Texas Access to Justice Commission renews statewide legal clinic initiative for Texas veterans

May 29, 2023

Capitol Credit Union Joins the Prime Partner Program  

May 17, 2023

Betty Balli Torres Receives Lifetime Achievement Award  

Apr. 25, 2023

Statewide Virtual Court Kiosk Project Launches to Improve Texans’ Access to Legal Aid Services

Nov. 29, 2022

Wells Fargo Joins the Prime Partner Program

More news

© 2024 Texas Access to Justice Foundation