IOLTA
Law & Legal abbreviation · Legal Profession
| Stands for | Interest on Lawyers' Trust Accounts |
|---|---|
| Categories | Law & Legal |
IOLTA stands for Interest on Lawyers' Trust Accounts, a legal profession abbreviation.
Program under which lawyers deposit client funds that are small or held briefly into pooled interest-bearing trust accounts, with the interest paid to a state foundation that funds civil legal aid for low-income people. Participation is mandatory in most states.
Example: The settlement check was deposited into the firm's IOLTA account until the medical lien was resolved.
Usage notes
Florida started the first program in 1981, and every state now has one. Lawyers may never mix client funds with their own money, and misuse of trust funds is a leading cause of disbarment. The Supreme Court upheld IOLTA against a takings challenge in Brown v. Legal Foundation of Washington (2003). New York's version is called IOLA.
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This entry is for general education and is not legal advice. Abbreviation use varies between institutions; always confirm in context.