IOLTA

Interest on Lawyers' Trust Accounts — a program where interest earned on client funds held in attorney trust accounts is used to fund legal aid services.

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Detailed Explanation

When attorneys hold client funds (retainers, settlement funds, escrow), they deposit them in IOLTA accounts. The interest generated funds legal aid organizations, pro bono programs, and access to justice initiatives. IOLTA programs exist in all 50 states and generate hundreds of millions of dollars annually for legal services. Your retainer funds are held in an IOLTA account until earned by the attorney.

Related Terms

Retainer Fee

An upfront payment made to a lawyer to secure their services, deposited into a trust account and billed against as work is performed.

Legal Aid

Free or low-cost legal services provided to low-income individuals through government-funded or nonprofit organizations.

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