Consider this issue each time client funds are received, and periodically thereafter. Generally, the choices are the IOLTA pooled account or a separate interest-bearing account for an individual client. Attorneys should consider the following factors:
- The amount of interest the funds will earn during the likely period of the deposit (balance, duration, rate, likelihood of delay in resolution of matter)
- The cost of establishing and maintaining a separate account for the benefit of the individual client
Generally speaking, if the interest to be earned by the funds would likely not be insignificant, then you should probably open a separate trust account for just that client. Otherwise, you would use your IOLTA pooled account.