All funds of clients, regardless of size, including advances for costs and expenses and excluding only “general retainer” fees need to be deposited into your trust account. The decision on where to place funds is based on ownership at the time the funds are received. Common examples include:
- Any retainer except a "general retainer"
- Settlement proceeds that include the attorney's fee
- Real estate loan proceeds prior to closing
- Funds from the sale of property belonging to the client
If client funds are placed in IOLTA trust account, lawyer must inform client how interest is handled. This is best done in your written engagement agreement.