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What Kind of Trust Account is Required?

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:

  1. 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)
  2. 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.

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