Trust Account FAQs

Who must have a trust account?
All active, out of state active and house counsel members of the Idaho State Bar must submit a trust account certificate with each annual licensing.  If an attorney does not handle Idaho client trust funds, he or she does not have to have an Idaho trust account.  The certificate provides a place to check to indicate that the attorney understands the trust account requirements, but he or she does not handle Idaho client trust funds so they do not have an Idaho trust account.

Which accounts must be reported?
All Idaho client trust accounts used by the attorney during the last twelve months must be reported to the Idaho State Bar.  If an attorney is licensed in other states, those states’ accounts should not be included on the Idaho certificate.  If the attorney works for a firm, the firm’s Idaho trust accounts should be listed even if the attorney does not actually personally handle the funds or the attorney is not a signatory on the account.  If an attorney had an account within the last twelve months that is now closed, it should be listed on the certificate and marked as "account closed."

When should trust account certificates be completed?
All active and house counsel members will get new trust account certificates with their annual licensing.  If a new account is opened, the attorney(s) using the account should file a new certificate.  Attorneys or firms who have opened new Idaho trust accounts should contact the Membership Department at (208) 334-4500 to request new certificates.

If a trust account is closed, it is not usually necessary to file a new certificate.  A letter informing the Idaho State Bar of the account closure along with a list of the attorneys who used the account is sufficient.

All Idaho trust accounts used in the last twelve months should be listed on each trust account certificate. 
 
Are there restrictions on the banks that can be used for trust accounts?
Idaho client trust accounts can only be in financial institutions that meet the following requirements:

  1. financial institutions physically located in Idaho, and 
  2. financial institutions that have agreed to participate in the Interest on Lawyers Trust Accounts (IOLTA) program and to Automatic Reporting of Trust Account Overdrafts (ARTAO).

A list of Idaho State Bar Approved Financial Institutions is published annually.

Can a “pad” of money be put in the trust account?
The only money that can be put in an Idaho client trust account is Idaho client trust funds.  The attorney cannot put a pad of his or her own money in the account.  As long as the banks know that the account is to be a client trust account, it should be no problem to open the account with a zero balance.

Interest on Lawyers Trust Accounts (IOLTA).
The IOLTA program gathers the small amounts of interest earned on general, nonspecific client trust accounts.  This interest does not belong to the attorneys, the banks and are not in sufficient amounts to give to the individual clients.  This money is pooled together and granted to organizations that meet the IOLTA grant requirements.  More information on the IOLTA program.

Automatic Reporting of Trust Account Overdrafts (ARTAO).
All Idaho client trust accounts are subject of automatic reporting of overdrafts.  If an account is overdrafted, the bank will send notification to the Idaho State Bar along with notification to the attorney.  More information on ARTAO.