Attorneys Need to Take Extra Care in Watching Client Trust Accounts

With the precarious economy and the number of financial institutions either failing (such as IndyMac Bank) or being taken over by other institutions (such as Washington Mutual), lawyers who have client trust accounts should be thinking about the safety of those accounts. Read more...

Arizona Supreme Court Rule 43 requires all lawyers who receive client funds in Arizona or in connection with representation of clients in Arizona to maintain an interest-bearing trust account to pool client funds of minimal amounts. The interest these accounts earn is remitted to the Arizona Foundation for Legal Services & Education for Arizona's IOLTA Program, to fund "programs designed to assist in the delivery of legal services to the poor, for law-related education... and to fund studies or programs designed to improve the administration of justice." In existence since 1984, Arizona's IOLTA program currently provides more than $1 million per year for these purposes.

When opening an IOLTA account, attorneys must instruct their financial institution to identify the account as an IOLTA account by submitting to them the Notification to Financial Institutions.  In addition, the State Bar of Arizona must be notified of the new account by submitting the Arizona IOLTA Enrollment Form.

To compare banks’ interest rates and service charges see our complete listing of approved participating banks.

If you have questions about completing the form, problems with your bank in setting up the account or questions about IOLTA requirements, please contact Tracy Ward at the State Bar of Arizona at 602-340-7219.

Guidance for Attorneys:

Do I need an IOLTA Account or a Separate Account ?